GGRAsia – Casino tech firm Paradise Ent 3Q EBITDA down 46 pct

Casino tech firm Paradise Ent 3Q EBITDA down 46 pct

Nov 14, 2017 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed casino equipment maker Paradise Entertainment Ltd reported on Monday third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD46.1 million (US$5.9 million), down 46.3 percent from HKD85.8 million in the prior-year period. For the first nine months of 2017, such EBITDA was HKD47.0 million, down 44.3 percent on the HKD84.4 million achieved in that prior-year period.

The firm didn’t give – in its selected, unaudited highlights – a number for net profit in either the third quarter or the first nine months of 2017.

In August, Paradise Entertainment reported a first-half net loss of HKD40.2 million, but that was nonetheless a narrowing by 90.2 percent on the HKD416.8-million net loss in the first half 2016.

In the third quarter this year, total reported group revenue for Paradise Entertainment was HKD267.3 million, down 24.1 percent from the HKD352.1 million achieved in the corresponding period in 2016, the firm said in Monday’s filing. In the year to September 30, group revenue was HKD756.6 million, representing a decrease of 13.2 percent from the HKD871.9 million in the corresponding period in 2016.

As well as making casino equipment under the LT Game brand such as the Live Multi Game product – an electronic table games platform featuring a live dealer but electronic betting and bet settlement – Paradise Entertainment also operates gaming at several Macau casinos under so-called services agreements using the Macau gaming licences of, respectively, SJM Holdings Ltd and Galaxy Entertainment Group Ltd.

Total third-quarter gross gaming revenue (GGR) from gaming operations at SJM Holdings’-licensed Casino Kam Pek Paradise was HKD336.1 million, representing a decrease of 2.1 percent from the HKD343.4-million a year earlier. For the first nine months, GGR at Kam Pek was HKD923.8 million, down 1.8 percent from the HKD941.1-million tally in the prior-year nine months.

Total GGR from gaming operations at Galaxy Entertainment-licensed Casino Waldo in third quarter 2017 was HKD138.6 million, an increase of 11.7 percent from the HKD124.1 million in third quarter 2016, and for the calendar year to September 30 was HKD387.6 million, up 6.7 percent from the HKD363.2 million aggregate in the prior reporting period.

Paradise Entertainment said that as of September 30, the group held bank balances and cash amounting to HKD213.1 million and chips on hand valued at HKD54.5 million.