Hong Kong-listed Century Entertainment International Holdings Ltd says it has signed an agreement to establish a joint venture to further develop an “existing gaming system platform and content development” business in the Philippines.
In a Tuesday filing, Century Entertainment said the joint venture partner – whose name was not disclosed – is a company incorporated in the Philippines and licensed by the nation’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor), as a “gaming system service and gaming content provider”.
According to the announcement, the joint venture will be established as a limited liability company in Hong Kong, and Century Entertainment will hold a 51-percent equity interest.
“The parties will use their best endeavours to enter into a definitive joint venture agreement to formalise the corporate structure, governance, and operational framework within 30 days,” stated Century Entertainment.
Under the agreement, Century Entertainment said it “will provide technical support for research and development,” as well as maintenance services, “market access through its distribution channels, marketing teams, and business development resources”.
The Hong Kong-listed firm will also ensure “administrative support, including financial management, legal compliance, and human resources services”.
The Philippines-based partner “will contribute its proprietary gaming system platform, content, software, source code, and associated intellectual property rights,” added the document.
The board of the joint venture will be comprised of five directors, with three appointed by Century Entertainment.
“Profits and losses will be shared in proportion to the parties’ equity interests with revenue calculated based on the gross gaming revenue of the gaming platforms, and further details, including revenue from third-party platforms, to be determined in the joint venture agreement,” noted Century Entertainment.
The Hong Kong-listed company started in October last year operations at two VIP rooms – under a three-year contract – in a casino at Dara Sakor, Koh Kong province, in Cambodia.
The two rooms in Cambodia have a combined gross floor area of about 650 square metres (6,997 sq feet), featuring seven gaming tables, according to the company.
Century Entertainment recorded no revenue for the six months to September 30, its fiscal first half. Net loss for the reporting period was about HKD11.4 million (US$1.5 million), it said in a December filing.
