GGRAsia – Paradise Ent posts higher revenue on LMG sales

Paradise Ent posts higher revenue on LMG sales

Nov 11, 2016 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed casino equipment maker Paradise Entertainment Ltd said revenue for the third quarter of 2016 increased by 38.6 percent year-on-year to approximately HKD352 million (US$45.4 million). Such increase was supported by higher sales of live multi game (LMG) terminals, the firm said on Thursday.

The company reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD78 million for the three months to September 30. That compares to a loss before taxation and other costs of HKD2 million in the third quarter of 2015.

Paradise Entertainment develops, supplies and sells electronic gaming systems in Macau and internationally under the LT Game brand. The company also provides casino management services in Macau under service agreements with two existing Macau operators.

“The increases in total revenue and improved adjusted EBITDA … were mainly attributable to the increase in sales of live multi game terminals,” the firm said in Thursday’s filing. The company’s LMG product range offers table games featuring a live dealer but electronic betting and bet settlement.

Revenue generated by the sales and revenue sharing of LMG terminals reached HKD126 million in the three months to September 30. That compares to HKD39 million in the prior-year quarter.

Sales and revenue sharing of LMG terminals contributed 35.8 percent of the total revenue in the third quarter of 2016.

In April it was revealed that Paradise Entertainment had agreed to transfer to global gaming and lottery supplier International Game Technology Plc all of its electronic table game technology, patents and other intellectual property. The exception was LT Game table game intellectual property used in Macau.

In its selected highlights for the third quarter, Paradise Entertainment did not disclose information regarding profit or loss. The company posted a net loss of HKD416.8 million for the first half of 2016, according to its interim report.

In the third quarter, revenue generated by the provision of casino services contributed 64.2 percent of the total revenue for the period. Such revenue increased by 5.1 percent year-on-year to HKD226 million.

The firm currently manages casino gaming at Casino Macau Jockey Club, Casino Kam Pek Paradise and at an electronic gaming hall at Casino Lisboa, all properties under the SJM Holdings Ltd gaming licence. It also manages casino operations at Casino Waldo, under a Galaxy Entertainment Group Ltd licence.

Paradise Entertainment said it maintained “a strong and liquid financial position”, with cash and bank balances of approximately HKD358 million and debt of approximately HKD85 million as of September 30, 2016.