GGRAsia – Casino services biz Paradise Ent turns EBITDA positive 1H

Casino services biz Paradise Ent turns EBITDA positive 1H

Aug 29, 2023 Newsdesk Latest News, Macau, Top of the deck

Macau-based gaming equipment supplier and casino services firm Paradise Entertainment Ltd reported revenue of HKD246.7 million (US$31.4 million) for the first half this year, up 36.2 percent from the prior-year period. That is according to a filing to the Hong Kong Stock Exchange on Tuesday.

The company posted a profit attributable to shareholders of HKD680,000, compared to a HKD87.9-million loss in the first six months of 2022.

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 (pictured in a file photo) in downtown Macau, with SJM Holdings Ltd as its licence partner.

Paradise Entertainment recorded adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of HKD31.0 million in the first six months of 2023, compared with an EBITDA loss of HKD64.4 million a year earlier.

The company achieved HKD55.8 million in terms of adjusted EBITDA from operations at Casino Kam Pek Paradise, compared to negative adjusted EBITDA from that venue, amounting to HKD23.3 million in first-half 2022.

The group’s adjusted EBITDA loss from the electronic gaming equipment and systems segment for the six months ended June 30 was HKD17.5 million, versus negative adjusted EBITDA of HKD30.4 million in the prior-year period.

For the six months to June 30 the company did not generate any revenue from the sale/leasing of electronic gaming equipment and systems in overseas markets. It compared with revenue of HKD21.3 million in the first six months of 2022.

In Tuesday’s filing, Paradise Entertainment said the increase in total reported revenue “was mainly due to the increase in revenue from the provision of casino management services in Macau”.

The company said the easing of Covid-related restrictions earlier this year, and the resumption of cross-border travel between mainland China, Hong Kong, and Macau, were factors contributing to “the increase in arrivals to Macau, which also led to an increase in the number of patrons to the casino under the group’s management in Macau” in the six months to June 30.

It added: “However, the increase in the total reported revenue of the group was partially offset by the decrease in revenue from the sale/leasing of electronic gaming equipment and systems in overseas markets.”

Paradise Entertainment reported a loss attributable to its owners of HKD154.6 million for full-year 2022. That was up 79.5 percent compared to a loss of just above HKD86.1 million in 2021, according to a Tuesday filing.