GGRAsia – Paradise Ent posts US$15mln 1H profit, flags dividend

Paradise Ent posts US$15mln 1H profit, flags dividend

Aug 28, 2024 Newsdesk Latest News, Macau, Top of the deck

Macau-based gaming equipment supplier and casino services firm Paradise Entertainment Ltd reported a profit attributable to its owners of just above HKD116.1 million (US$14.9 million) for the first half of 2024. That compared to a profit of HKD680,000 in the prior-year period, according to a Wednesday filing.

The first-half result was on revenue that rose 72.4 percent year-on-year, to HKD425.3 million. Costs of sales and services increased by 26.7 percent year-on-year, to HKD167.0 million.

Paradise Entertainment said its board declared an interim dividend of HKD0.05 per share, amounting to HKD52.6 million. The dividend is to be paid on October 15.

The Hong Kong-listed company reported adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of HKD147.7 million for the six months to June 30, up 376.5 percent from a year earlier.

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 downtown Macau, with SJM Holdings Ltd as its licence partner.

“The solid recovery of the gaming industry from the pandemic and the surge in visitor arrivals to Macau during the six months ended 30 June 2024 have benefited the group’s operations in Macau, in particular the number of patrons to Casino Kam Pek Paradise,” stated the firm.

The company also said that the group’s electronic gaming equipment and systems, including its ‘live multi-game’ (LMG) tables, had an “increasing appeal” to casino operators in Macau as the market recovered.

It added: “The group’s results for the reporting period demonstrate its ability to capitalise on the recovery in Macau’s gaming market and its continued commitment to leveraging its expertise to drive growth in the region.”

Revenue from Paradise Entertainment’s casino operations stood at HKD356.5 million in the first half this year, up 48.5 percent from a year ago. The property featured in the first half, on average, 20 live-dealer gaming tables, 95 slot machines, 10 LMG tables, and 956 LMG terminals.

Adjusted EBITDA from operations at Casino Kam Pek Paradise was HKD143.8 million for the opening six months of 2024, compared with HKD55.8 million in the prior-year period.

Revenue in the electronic gaming equipment and systems segment grew to HKD68.2 million in the first half this year, compared to HKD3.9 million a year earlier. Adjusted EBITDA from this segment was HKD11.2 million, compared to a negative figure of HKD17.5 million in first-half 2023.

Office, showroom in the Philippines

In November, the LT Game brand launched two new standalone slot machine games – “Hulunbuir Grassland” and “Street Steel” – aimed at gaming destinations beyond its Macau home market, as looks to Southeast Asian markets for placement of its products.

In Wednesday’s filing, Paradise Entertainment said that in order to “capture the shifting dynamics of the Asian gaming industry”, the group was “actively expanding its business of supplying gaming equipment and systems to other Asian markets”, specifically to the Philippines, which the firm said “it holds the title of the largest electronic gaming machine market in Asia.

The Philippines, it added, offers “great flexibility with numerous casinos and a variety of gaming types”.

The company said the Philippines present a “significant opportunity” for Paradise Entertainment to make use of its “expertise and innovative product offerings to cater to the diverse gaming preferences” in that market.

The firm stated: “To support this strategic expansion, the group is in the process of setting up a new office and showroom in the Philippines.”

“This physical presence will enable the group to establish a stronger foothold, enhance its customer relationships, and provide direct support and after-sale services to its customers in the region,” it added.

Paradise Entertainment also said it was “committed to an adaptive but prudent approach” regarding expansion of its business.

“Recognising the immense potential in the growing markets across Asia, such as the Philippines, Vietnam, and Cambodia, as well as the North American markets, the group will take a proactive approach to explore these overseas gaming opportunities in addition to the Macau gaming market,” it stated.