Century Entertainment International Holdings, a Hong Kong-listed gaming investor, is preparing to launch its new VIP gaming business in Cambodia by early September, following a challenging financial year that ended on March 31, 2024.
Strategic shift and operational update:
Formerly known as Amax International and previously engaged in Macau’s junket industry, Century Entertainment recently terminated an agreement with its Chairman and CEO, Ng Man Sun, to operate VIP gaming tables at a Cambodian casino. Instead, it has entered into a new agreement directly with the casino’s owners to operate seven VIP tables.
Despite the cancellation, Century Entertainment faces significant financial hurdles, reporting a loss of HK$24.2 million (US$3.1 million) for FY24 and highlighting net liabilities of HK$79.8 million (US$10.2 million). The company acknowledges “significant doubt” about its ability to continue as a going concern but remains optimistic about the upcoming launch of its VIP gaming rooms.
Quoting Century Entertainment’s statement: “With the VIP rooms scheduled to be opened in early September, the Group is cautiously optimistic about its revenue contributions starting from the second half of 2024 and onwards.”
In addition to its Cambodian venture, Century Entertainment is exploring further gaming opportunities both in Cambodia and internationally. It particularly highlights Thailand, where discussions to legalize casino operations are ongoing. The company sees this as a strategic opportunity for geographic expansion and is prepared to adjust its business strategy accordingly.
Century Entertainment stated: “Looking beyond Cambodia, the Group will closely monitor the developments in neighbouring Thailand, where plans to legalize casinos are underway. This presents a compelling opportunity for geographic expansion, and the Group will be well-prepared to adapt its strategy accordingly to seize emerging market dynamics.”
Commitment to shareholders and future prospects:
Despite its financial challenges, Century Entertainment remains committed to delivering sustainable returns to its shareholders. The company emphasizes its dedication to navigating uncertainties and leveraging its operational strengths to achieve long-term profitability.
As Inside Asian Gaming reports, Century Entertainment commented on this: “Despite the prevailing uncertainties, the Group remains cautiously optimistic and steadfast in its commitment to delivering sustainable returns to its shareholders.”
As Century Entertainment prepares to launch its Cambodian VIP gaming operations, the company faces both financial obstacles and growth opportunities in Southeast Asia’s evolving gaming landscape. The upcoming months will be crucial as it seeks to stabilize operations and capitalize on emerging market dynamics.
Looking ahead, Century Entertainment’s focus on expanding its presence in Cambodia and potentially entering the Thai market underscores its strategic vision for growth. The company’s readiness to adapt to regulatory changes and market dynamics reflects its proactive approach to seizing opportunities in the region.
Source link
Vanja Mitic 2024-06-26 13:33:19
