Amax records net loss in FY17

Macau casino investor Amax International Holdings Ltd. recorded a net loss of HK$988.5 million (US$126.7 million) for the fiscal year ended March 31, 2017.

Amax, in a filing on Thursday, said the net loss was mainly due to “recognition of impairment losses which are non-cash in nature and do not have any impact on the cash flow of the group.”

The main impairment losses is related to the company’s interest in Greek Mythology and the amount due from Greek Mythology, which resulted in an impairment loss of HK$901.2 million.

In addition, it recognized impairment losses on the gaming license for its gaming business in Vanuatu, resulting in HK$39.6 million in impairment losses, and its investment in mobile game apps with the impairment, resulting in HK$2.3 million in impairment losses.

Net loss in FY17 was a significant increase from the year before, which was only HK$49 million in comparison.

The group however recorded a revenue of around 8.7 percent year-on-year to HK$11.4 million, up from HK$10.5 million.

The increase in revenue was mainly attributable to the revenue derived from the newly commenced gaming operation in Vanuatu which is more than offset the loss in revenue after the disposal of the Rainbow Worldwide Ltd.

The financial information of Greek Mythology, for which Amax holds 24.8 percent equity interests, was still unavailable to the company

for the preparation of consolidated financial statements, said Amax.

Regarding its business operations in Vanuatu, the group said it has adopted a more conservative strategy from December 2016, and is focusing on cutting operational expenses in view of the changing market conditions.

At the same time, the Group has also been exploring opportunities to expand its revenue sources by exploring cooperation with other potential gaming players in the Asia Pacific region, said the company.