Amax International holdings, an investment company engaged in gaming in Macau, swung to a net loss for the financial year ended 31 March 2015, as a one-time gain from the sale of a unit wasn’t repeated.
The company had a loss of about HK$41.4 million ($5.3 million), compared to a net profit of approximately HK$65.4 million for the same period the year before.
The net profit for the 2014 financial year was primarily attributable to a one-off gain of HK$102.4 million from the disposal of Ace High Group Limited, a wholly-owned subsidiary of the company.
The loss per share in 2015 amounted to HK$0.16 compared to HK$0.30 last year.
The group’s turnover came to HK$5.12 million for the year, compared to approximately HK$4.97 million for the corresponding period last year.The group’s main sources of revenue were the income on VIP gaming tables and slot machine-related operations.
During the year, the company announced the acquisition of a 60 percent equity interest in Forenzia Enterprises Limited, with the aim to diversify its core gaming and entertainment business. Forenzia Enterprises has a license for online gambling in Vanuatu.
The company said by expanding it hopes to offset the risks of Macau, which is experiencing lower player levels.
“Solid growth in gaming revenue had attracted a large number of market players. However, since early last year, the region was hit by negative growth.”
“Under these circumstances, and in order to mitigate the challenges of the gaming industry in Macau, the company has been actively seeking opportunities elsewhere in Asia Pacific. The management of the company is optimistic about the gaming business prospects in the Republic of Vanuatu. Vanuatu is a popular travel destination for tourists from Australia, New Zealand, New Caledonia, Europe, North America and Japan.”
“The company has full confidence in the high potential of Vanuatu as the next gaming hotspot and is well-poised to benefit from the unfulfilled demand by establishing gaming operations there.”