Amax to pursue international growth amid Macau constraints

Junket operator, Amax International, said it will actively pursue expansion outside of Macau to take advantage of high-rollers’ willingness to travel further afield and as VIP gambling revenue slows at home.

“The group is of the view that maintaining a high growth rate of the sector will be a challenge in 2014 as the Macau government has imposed measures to control the expansion of the gaming sector by constraining the supply of gaming tables,” it said in a statement to the Hong Kong Stock Exchange. “In view of a slowed growth in the Macau gaming sector, especially in the high roller segment, the group further consolidated its business resources and sought to expand its core business outside Macau to absorb the unfulfilled demand from high rollers in Asia, who are more willing to visit casinos outside Macau.”

The company said it will actively seek to close its bid this year to buy a 60 percent stake in Forenzia Enterprises, a company that holds an interactive gambling license in Vanuatu.

Amax posted a profit in the year ending March 2014, though its earnings came from a one off gain, and overall turnover fell.

The company also said it was unable to provide financial information on its Greek Mythology associate, which has a significant impact on results.

“In order to reflect the current available financial information to shareholders, the company decided to present all significant financial information excluding the financial information of Greek Mythology,” it said.

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.

Amax last week filed a lawsuit in a Macau court in another attempt to force Greek Mythology, in which it has a 24.8 percent stake, to disclose its accounts.

 

Latest Intelligence

Latest issue

PATA CEO sees slow recovery, but optimism for future

AGB Podcasts