Hong Kong-listed casino equipment maker Paradise Entertainment Ltd says it expects to record a profit of HKD139.4 million (US$17.8 million) for full-year 2025. That would be down HKD242.5 million, or 63.5 percent, from the previous year, the company said in a Monday filing.
The firm stated the expected decline in profit was mainly due to: a decrease of HKD85.2 million, or 11.9 percent year-on-year, in the group’s revenue from the provision of casino management services in Macau; and a fall of HKD165.5 million, or 45.3 percent from the previous year, in revenue from the sale and/or leasing of electronic gaming equipment and systems.
Another factor impacting profitability was a HKD42.1-million payment to its employees and reimbursement to SJM Resorts Ltd for gaming-operation staff employed by SJM Resorts who worked for Casino Kam Pek Paradise. It is anticipated this payment will be charged to Paradise Entertainment’s consolidated financial statements as expenses for employees’ compensation and benefits, the company stated.
Casino Kam Pek Paradise was run until December 1 last year by Paradise Entertainment, under the licence of SJM Resorts. The latter is a unit of SJM Holdings Ltd. Most Macau satellites were under the SJM group’s licence and all but one closed last year as part of citywide regulatory changes that saw the end of the satellite-casino sector.
“The non-renewal of the service agreement [with SJM Resorts] and the cessation of operations of the casino had an adverse impact on the business performance of the casino,” Paradise Entertainment said in Monday’s update.
“The early termination of operations of the casino … resulted in a loss of nearly one month of anticipated income for the group” in 2025, it added.
Paradise Entertainment also supplies casino equipment under the LT Game brand.
The group said it “experienced a decrease in revenue from the sale and/or leasing of electronic gaming equipment” last year, “particularly with regard to the sale of live multi game (LMG) terminals and systems in Macau”.
Paradise Entertainment said the sale of LMG terminals had “weakened” during 2025, as customers might have opted to “postpone their purchases” in anticipation of the group launching its new LMG software, dubbed ‘Black Coral’.
LT Game told GGRAsia in an interview last year that it planned to continue developing new functions and features for its LMG product, in order to expand its reach across regulated gaming markets. The company expects officially to launch Black Coral in the first quarter of 2026, stated LT Game’s chief operating officer, Eddie Au, at the time.
“Revenue recognition of this new version of LMG systems has not yet occurred,” the firm noted in its latest filing.
It added: “The group anticipates that Black Coral will enhance player engagement and accelerate the replacement of existing LMG terminals and systems in operation, hence driving future revenue growth of the group in this segment.”
LT Game launched recently its own iGaming brand, “Infernoplay”, for regulated online markets in Europe and Asia.
