Mar 29, 2023 Newsdesk Latest News, Macau, Top of the deck  
Macau-based gaming equipment supplier and casino services firm Paradise Entertainment Ltd reported a loss attributable to its owners of HKD154.6 million (US$19.7 million) for full-year 2022. That was up 79.5 percent compared to a loss of just above HKD86.1 million in 2021, according to a Tuesday filing.
The result was on revenue that fell 39.7 percent year-on-year, to HKD297.8 million.
The decrease in revenue “was mainly due to the decrease in revenue from the provision of casino management services in Macau and the sale [and] leasing of electronic gaming equipment and systems in Macau as a result of the tough business environment” caused by the Covid-19 pandemic, stated the firm in the filing to the Hong Kong Stock Exchange.
It said such revenue decline was “partially offset by the increase in revenue from sale [and] leasing of electronic gaming equipment and systems in overseas markets”.
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 a file photo) in downtown Macau, with SJM Holdings Ltd as its licence partner.
Paradise Entertainment said its 2022 results had been prepared on a “going concern” basis. As at December 31, the group had cash and cash equivalents of just under HKD20.2 million, and net current liabilities of just over HKD54.4 million.
In the reporting period, Paradise Entertainment had secured a deed for an unsecured 10-percent interest loan with Jay Chun, a shareholder and executive director, for HKD120 million, “to strengthen the liquidity of the group”. Mr Chun is also the firm’s co-chairman and managing director.
As at 31 December 2022, the group had drawn down nearly HKD65.0 million, it stated.
Paradise Entertainment slipped to a HKD109.0-million loss in 2022 in terms of adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA). That compared with a EBITDA loss of HKD18.4 million in the prior year.
Adjusted EBITDA from operations at Casino Kam Pek Paradise was a negative HKD38.0 million for full-year 2022, compared with positive adjusted EBITDA of HKD42.3 million in 2021. The company said the deterioration was “mainly due to the decrease” in gross gaming revenue for the latest reporting period.
Revenue from its casino operations stood at HKD266.9 million last year, compared to HKD415.7 million in 2021.
Adjusted EBITDA from the electronic gaming equipment and systems segment was negative to the tune of HKD53.6 million, compared with a loss of HKD21.2 million in 2021. The firm said the segment’s performance was negatively impacted by a “decrease in revenue from the provision of upgrading services” to Live Multi Game (LMG) terminals in the Macau market.
Revenue in the electronic gaming equipment and systems segment was HKD30.9 million in 2022, compared to HKD78.4 million in the prior year.
Despite the worsening business environment in 2022, Paradise Entertainment said it invested a total of HKD37.4 million that year in research and development related to electronic gaming equipment and systems. That was in order “to enhance its product specifications and competitive advantages, attract potential customers and increase market penetration and share,” it stated.
The company gave some commentary on its service agreement for Casino Kam Pek Paradise after renewing in December the service contract with SJM Holdings, for a further three years.
Paradise Entertainment said it had been allocated “quotas for managing 30 gaming tables and 100 slot machines” in Casino Kam Pek Paradise until December 31, 2025.
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