Macau-based gaming equipment supplier and casino services firm Paradise Entertainment Ltd reported a profit attributable to its owners of just under HKD172.5 million (US$22.2 million) for the first six months of 2025. That was up 48.5 percent from the prior-year period, according to a Wednesday filing.
The first-half result was on revenue that rose 19.4 percent year-on-year, to HKD507.9 million. Costs of sales and services increased by 7.3 percent from a year earlier, to HKD179.3 million.
Paradise Entertainment said its board declared an interim dividend of HKD0.075 per share, amounting to HKD78.9 million in aggregate. This year’s interim dividend – up from HKD0.050 a year earlier – is to be paid on October 15.
The Hong Kong-listed company reported adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of HKD211.8 million for the six months to June 30, up 43.4 percent from the prior-year period.
Paradise Entertainment, which supplies casino equipment under the LT Game brand, also has a service agreement for a satellite gaming venue at Casino Kam Pek Paradise in downtown Macau, with SJM Holdings Ltd as its licence partner.
In Wednesday’s filing, the company stated: “The increase in the total reported revenue of the group was mainly due to the increase in revenue from the provision of casino management services and the sale of electronic gaming equipment and systems in Macau.”
Revenue from Paradise Entertainment’s casino operations stood at HKD382.6 million in the first half this year, up 7.3 percent from a year ago.
Adjusted EBITDA from operations at Casino Kam Pek Paradise was HKD170.5 million for the opening six months of 2025, compared with HKD143.8 million in the prior-year period.
Revenue in the electronic gaming equipment and systems segment grew by 83.7 percent year-on-year, to HKD125.3 million in the first six months of 2025. Adjusted EBITDA from this segment was HKD48.8 million, compared to HKD11.2 million in first-half 2024.
The company said that the increase in revenue from the sale and leasing of electronic gaming equipment and systems was mainly due to an “increase in demand for, and popularity of,” its ‘live multi-game’ (LMG) terminals and other products.
Casino closure
The firm stated: “In view of the increasing appeal of electronic gaming equipment and systems to both the casino operators and the patrons, in addition to the home market of Macau, the group is in the course of expanding its business of supplying electronic gaming equipment and systems to other Asian markets, such as the Philippines and the Sri Lanka markets, as well as the North American markets.”
In Wednesday’s filing, Paradise Entertainment said the development of Macau’s mass gaming market “aligns closely with the group’s strategic objectives”, as the shift in the market away from the VIP segment “enhances the accessibility of gaming experiences for a broader audience”.
It added: “LMG, the group’s first and core flagship patented product, plays a key role in this strategy, offering a user-friendly and engaging platform specifically designed to appeal to the mass market.”
In April, the company opened a local facility for assembly of its products. The site covers 20,000 square feet (1,858 sq. metres) in an industrial building in the northern portion of Macau peninsula.
“Now fully operational, the line is equipped to produce a wide range of gaming products,” said the company in the announcement.
Paradise Entertainment said it remains “committed to actively pursuing new opportunities both in Macau and across international markets,” as a way to compensate for the expected loss of revenue from the provision of casino services in the Macau market.
The company will have to close Casino Kam Pek Paradise by year end. That was after the SJM brand decided not to continue to run the venue once the full effect of new satellite regulations take effect on January 1, 2026.
The impending change follows a three-year grace period to allow for satellites and gaming licence holders to transition to a management fee model if they so wished.
Paradise Entertainment said it expects to “report a material reduction in the reported revenue and profit attributable to shareholders after the expiry of the service agreement” with SJM.
