Amax International aims for greater diversity

    Hong Kong-listed junket operator Amax International said it plans to evolve into a diverse holding company with a portfolio of gaming and entertainment businesses in multiple markets.
    In a statement to shareholders in the company’s annual report, Chairman Ng Man Sun said over the coming year Amax will work on finalizing an acquisition in Vanuatu, while seeking investment prospects in other potential markets.
    “I am very confident about the prospects of the new investment plans,” he said.
    The company is seeking to buy a 60 percent stake in Forenzia Enterprises, a company that holds an interactive gambling license in Vanuatu.
    Ng also confirmed Amax’s view that the gaming market in Macau will slow, prompting its decision to diversify into other markets.
    “The group foresaw a slowing growth in the gaming sector in Macau in the coming years, especially in the high roller segment, following the government’s proposed measures to regulate the expansion of the gaming sector,” he wrote. “The group therefore decided to explore geographic diversification in its core business and seek to absorb the unfulfilled demand by establishing a casino operation outside Macau.”
    Amax posted a profit in the year ending March 2014, though its earnings came from a one off gain, and overall turnover fell. Net profit was about HK$65.4 million ($8.4 million), compared to a net loss of approximately HK$39.4 million for the financial year ended 31 March 2013. The group had a one-time gain of $102 million from the disposal of Ace High Group. Turnover fell to $4.96 billion from $5.49 billion in 2013.