Century Entertainment’s VIP room at Dara Sakor, Cambodia is set to open in September of this year, the company revealed in its latest financial report.
On May 3rd of this year, Wisdom Ocean Group Limited, a Century Entertainment subsidiary, signed an agreement with a company named LongBay Entertainment to manage VIP room gaming activities in Dara Sakor, focusing on baccarat across seven tables in a 650-square-meter space.
Under the agreement LongBay Entertainment will handle licensing, operational expenses, and dealer services, letting the group enhance customer experiences.
The monthly rent is set at $35,000, with Century entitled to all house winnings and responsible for house losses, staff costs, and taxes.
‘The VIP room is expected to open in early September 2024, with the Group anticipating substantial revenue generation by year-end. Given the growth potential and tourist appeal of Dara Sakor, the Board is optimistic about increasing revenue and reinforcing the Group’s market position,’ Century pointed out.
Improved results
According to its latest financial report, Century reduced its net losses to some HK$24.2 million ($3 million) for the fiscal year ending March 31st, 2024, a significant improvement from HK$62.5 million ($8 million) the previous year and attributed to fewer impairment losses.
The company reported zero revenue for the two fiscal years ending March 31st, 2024, attributing this to the prolonged closure of Cambodian casinos due to COVID-19.
Despite these challenges, the group remained optimistic, citing that Cambodia’s tourism industry showed promising recovery signs in 2023, with international tourist arrivals increasing by 139 percent to 5.43 million.
This resurgence, coupled with the Cambodian government’s efforts to regulate gaming activities, is expected to create a healthier market environment for licensed operators.
The group’s AR/VR segment also faced challenges due to intense market competition and reduced demand, with Century Entertainment saying it is ‘exploring restructuring options and alternative business prospects to mitigate risks and prioritize core gaming operations’.
Looking ahead, the Cambodian government’s initiatives to boost tourism, including infrastructure improvements and the inauguration of the Siem Reap Angkor International Airport, are expected to increase tourist arrivals, supporting the country’s economic revival.
Century Entertainment stated it plans to leverage its extensive gaming industry experience in Cambodia to drive growth, while exploring investment opportunities in the entertainment technology segment and monitoring developments in neighboring Thailand, where casino legalization is under consideration.
In the financial report, an independent auditor expressed concerns regarding the group’s ability to continue as a going concern, highlighting net losses and cash outflows.
In response to these concerns, the company said to be taking measures to improve liquidity and financial position, including securing additional financing and resuming gaming table business operations in Cambodia.
