GGRAsia – Paradise Ent narrows 1H loss to US$2.7mln, as rev grows

Paradise Ent narrows 1H loss to US$2.7mln, as rev grows

Aug 27, 2021 Newsdesk Latest News, Macau, Top of the deck

Casino games maker and casino management firm Paradise Entertainment Ltd reported a nearly HKD20.8-million (US$2.7-million) net loss for the first half this year, compared to a HKD109.4-million loss in the prior-year period, it said in a Thursday filing to the Hong Kong Stock Exchange.

Group-wide revenue for the period rose by 45.4 percent year-on-year, to HKD257.9 million in the first six months of 2021.

The group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) were HKD5.1 million in the first half, versus a negative performance of HKD53.5 million in the opening six months of 2020.

The Hong Kong-listed firm controls LT Game Ltd, a brand that provides of electronic gaming equipment and management technology for casinos. It also runs casino operations at Casino Kam Pek Paradise, under the licence of Macau concessionaire SJM Holdings Ltd.

Most of the group’s revenue, 88.3 percent, i.e. HKD227.7 million, came from casino management services, rather than gaming product sales or product leasing. First-half 2021 casino management revenue recorded a 59.7-percent increase from the HKD142.6-million such revenue realised in first-half 2020.

Paradise Entertainment saw its first-half revenue from the electronic gaming equipment and systems segment nearly triple, to HKD30.2 million. The company said it provided upgrading services to 1,228 live multi game (LMG) terminals at various casinos in Macau, and sold 12 slot machines in overseas markets.

Nonetheless, the segment recorded a loss of HKD14.3 million, mainly because of HKD27.9 million in costs related to research and development, the company said.

A separate release from Paradise Entertainment quoted Jay Chun, the firm’s chairman and managing director, as saying that amid the “increasing awareness” regarding health issues, the group’s LMG machines had “continued to perform well.”

“The group will continue to invest in research and development and other costs on electronic gaming equipment and systems,” he added. “We believe such investment strategy will create a solid platform for our future growth in both Macau and the global market in the long run.”

Mr Chun said additionally that the company did “not anticipate a solid rebound” in its overall performance, amid uncertainties caused by the Covid-19 pandemic.

Paradise Entertainment slipped to a HKD189.2 million net loss for full-year 2020, compared to a HKD926,000 profit in 2019, according to its annual results published in March.