Key Moments:
- Century Entertainment transitioned from a net loss to a net profit of HK$26.4 million (US$3.4 million) in the first half of its 2026 fiscal year
- Revenue reached HK$5.76 million (US$739,855), primarily driven by a new online gaming platform partnership with World Platinum Technologies Inc.
- One-off accounting gains, including reversal of a HK$30.2 million (US$3.9 million) impairment and debt settlement, had a significant impact on reported profits
New Business Strategies Spark Financial Upswing
Century Entertainment, listed on the Hong Kong exchange, revealed marked improvement in its financial performance for the first half of the 2026 fiscal year. After several periods with no revenue, the company posted an income of HK$5.76 million (US$739,855) and swung from a net loss of HK$11.4 million (US$1.5 million) the previous year to a net profit of HK$26.4 million (US$3.4 million).
Online Gaming Platform Delivers Immediate Results
This rebound followed the initiation of two key business projects after the discontinuation of its Cambodian gaming table operation. Chief among these efforts is the rollout of an online gaming platform in partnership with Philippines-based World Platinum Technologies Inc. This collaboration yielded HK$5.1 million (US$655,000) in revenue and achieved an 80.7 percent gross margin during the period. The high margin model allowed the online segment to contribute approximately HK$4.1 million (US$526,630) to overall gross profit in the six months under review. The partnership centers on the development, marketing, and distribution of WPT’s gaming platforms and content targeting the Asia-Pacific region.
| Metric | First Half FY2026 | Prior Year |
|---|---|---|
| Total Revenue | HK$5.76 million (US$739,855) | 0 |
| Online Gaming Platform Revenue | HK$5.1 million (US$655,000) | N/A |
| Net Profit/(Loss) | HK$26.4 million (US$3.4 million) | HK$11.4 million (US$1.5 million) loss |
| Gross Margin (Online Platform) | 80.7% | N/A |
| Contributed Gross Profit (Online Platform) | HK$4.1 million (US$526,630) | N/A |
Non-Recurring Gains Boost Bottom Line
The company’s improved profitability also owed much to extraordinary items. Century Entertainment finalized a settlement with former major shareholder Ng Man Sun, erasing certain payables, loans, and convertible bond liabilities, which resulted in a one-off gain of roughly HK$3 million (US$385,340). Further amplifying the gains was the reversal of a HK$30.2 million (US$3.9 million) impairment loss linked to the settlement. Management noted that these items have made a material contribution to overall profit for the period and are not expected to recur.
Exploring Growth in Vietnam
As part of its ambition to rebuild its gaming footprint, Century Entertainment has executed a non-binding letter of intent with an operator in Vietnam to explore opportunities for table game expansion. This marks a move to revitalize core gaming business activities in the aftermath of its exit from Cambodia’s gaming market.
Financial Structure and Ongoing Challenges
Despite progress on the operational front, the company continues to face balance sheet pressures, including net current liabilities and net liabilities. The board highlighted that sustained financial health relies on the continued backing of major shareholders and growth in its new business initiatives. Management stated their confidence that the current ventures can generate recurring revenues, aiding a durable turnaround. However, they also acknowledged that most of the recent profit reflects non-recurring items rather than underlying operational strength.
Looking Forward
While the turnaround in the first half has been notable, Century Entertainment’s long-term outlook depends on scaling its new gaming initiatives and maintaining investor confidence. The market is likely to closely monitor whether the promising start of its online business can produce lasting, organic gains beyond the effects of one-off adjustments and financial support from shareholders.
- Author
Daniel Williams
