Amax Holdings recently announced its financial results for the third quarter of 2025, with profits plummeting by 91% year-over-year, from HK$101 million in the same period last year to HK$9 million. This decline was mainly due to the successive closures of satellite casinos and intensified competition in Macau's gaming industry leading to a shrinking market share. The company is responding to challenges through resource adjustment and strategic restructuring to achieve long-term stability.
Main Reasons for Profit Decline
The phased closure of satellite casinos is the core factor in Amax's profit damage. In the third quarter of 2025, several satellite casinos ceased operations, including the closure of Grandview Casino in July, and the closure of Grand Emperor and Legend Palace within this quarter. By the end of September, the number of operating satellite casinos decreased from 9 in the same period last year to 8, directly weakening the contribution to gaming revenue.
Detailed Financial Data Analysis
The company's net gaming revenue decreased by 6.5% year-over-year to HK$65.4 billion, and total net revenue decreased by 6.2% to HK$70.3 billion. Adjusted EBITDA fell by 15% to HK$881 million, with the profit margin dropping to 12.5%. Total gaming revenue (GGR) decreased by 4.7% to HK$71.4 billion, with overall market share dropping from 13.9% in the same period last year to 11.8%. The contribution of satellite casinos to GGR decreased from 5.1% to 3.9%, highlighting their impact.
Strategic Adjustments and Leadership Response
Chairman Pansy Ho acknowledged the "significant obstacles" in performance, emphasizing that the company is actively adjusting resources and table allocations to strengthen core operations. Amax recently acquired the gaming area of the Grand Lisboa Hotel from its parent company STDM for HK$529 million, planning to integrate resources to enhance synergistic effects. Additionally, the company completed the acquisition of an office building near Hengqin Port, intending to convert it into a mid-range hotel focused on the cross-border tourist market.
Long-term Outlook and Restructuring Plans
Despite ongoing short-term financial challenges, Amax is committed to improving operational efficiency and sustainable development. In the first nine months of 2025, total net revenue slightly increased by 1.8% to HK$216.7 billion, but net losses widened to HK$173 million. The company holds HK$34.5 billion in cash and has liabilities of HK$273.1 billion. Pansy Ho stated that restructuring measures will help the company enter 2026 with a more robust posture, focusing on high-performance assets.
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