Mobile investments

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Casino and gaming investment company Amax International Holdings Ltd (Amax) has struck a deal to purchase a bundle of mobile game software applications for HKD27 million (US$3.4 million), according to a company release filed with the Hong Kong Stock Exchange.
The deal was finalised with Sky Bliss International Limited, and settled through Amax subsidiary Digital Zone Global Limited.
According to the release, the purchase involves 30 offline mobile game apps focused on areas including ‘leisure and entertainment’, ‘education and intellectual’, ‘sport’ and ‘adventures’. The group justified the purchase on the basis of ‘the growing popularity of smart phones, the future business prospect of global mobile gaming market’ and the valuation of the software itself.
Following the purchase, the release of the mobile game apps will take six months, through an as-yet-named but ‘well-known’ third-party digital distribution platform. The filing stated that Amax is planning to establish a marketing and programming team, either on its own or through a third party, to encourage app downloads and updates for the service. Players of the games will be charged on a subscription basis, notes the company.
‘In view of the increasing popularity of the use of mobile devices and mobile entertainment, combining with [Amax’s] expertise in the gaming and entertainment-related businesses,
the Directors are confident that the launching of the mobile game apps could bring in additional income stream to the Group,’ noted the filing.
According to the group’s most recent interim report, for the six months ended September 30 2016, its revenues increased 3.8 per cent year-on-year, reaching HK$4.11 million. Additionally it saw an 8.99 per cent year-on-year contraction of its losses for the six-month period, hitting HK$15.19 million.
Amax is chaired by local businessman Ng Man Sun, and owns a 24.8 per cent equity interest in Greek Mythology (Macau) Entertainment Group Corporation Ltd. The group runs Greek Mythology Casino, which has been closed since December of 2015, reportedly due to renovation works.
The casino was operated by Sociedade de Jogos de Macau S.A. (SJM) and is located in the Beijing Imperial Palace Hotel, which was closed by the Macao Government Tourism Office (MGTO) in July of 2016 for security issues.