HONG KONG: RAS Technology Holdings Limited (ASX: RTH) has announced the establishment of a wholly owned subsidiary, Racing and Sports Asia (RASA), in Hong Kong, marking a significant step in its expansion across the Asian region.
RASA has agreed to acquire six established racing publications and a data service for HKD$20.0 million (approximately AUD$4.02 million).
The acquired publications include market-leading Hong Kong-based racing titles such as the Hong Kong Daily News Racing Booklet and *Newspaper*. This acquisition positions RAS as a major player in Hong Kong, one of the world’s largest wagering markets, and provides diversification of revenue and growth opportunities across Asia.
The assets acquired generated AUD$3.60 million in revenue and a profit of AUD$404,000 in FY24. The acquisition is expected to be earnings accretive within the first year, with substantial growth anticipated in the short to medium term. RAS plans to invest an additional AUD$500,000 in 2025 to enhance the acquired brands’ products and systems, leveraging its data and technology assets to improve quality and automation.
RAS CEO Stephen Crispe highlighted the strategic importance of the acquisition, stating, “Establishing a local Hong Kong business combined with this acquisition will significantly impact the Company’s future growth in the region. By leveraging our world-class technology and data, we can rapidly expand in Hong Kong and the broader Asian arena.”
The acquisition is expected to deliver significant expense synergies through increased automation and the integration of RAS’s data and technology assets. RAS’s revenue from Asia is projected to increase from 2% to 17% of total revenue following the acquisition.
Hong Kong is a key market in the Asia-Pacific region, which accounts for approximately 59% of the global racing wagering market, with a turnover of around AUD$106 billion. The top four markets in the region are Japan (AUD$40.3 billion), Australia (AUD$28.7 billion), Hong Kong (AUD$21.0 billion), and South Korea (AUD$7.8 billion).
RASA will also integrate advanced content and data analytics into the acquired publications and launch a cutting-edge online platform to target younger, digitally native audiences. The move strengthens RAS’s collaboration with the Hong Kong Jockey Club (HKJC) and supports the growth of the local racing industry, including new initiatives at the Conghua Racecourse in China.
As part of the deal, RASA will maintain a local team in Hong Kong and implement operational standards expected of a listed company subsidiary. RAS plans to continue identifying regional talent to manage the integration and growth of the business.
RAS Technology Holdings, founded in 1999, is a leading provider of premium data and enhanced content to the global racing and wagering industries. Its clients include major players such as Entain Group, Flutter Group, Tabcorp, and the Hong Kong Jockey Club.
The acquisition is subject to customary conditions, including regulatory approvals, and is expected to be completed within 45 days.
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