GGRAsia – Paradise Entertainment 3Q EBITDA down 67pct

Paradise Entertainment 3Q EBITDA down 67pct

Nov 12, 2019 Newsdesk Latest News, Macau, Top of the deck

Paradise Entertainment Ltd, a casino equipment maker and gaming management services firm, said its third-quarter group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 66.5 percent year-on-year.

Such EBITDA was HKD6.6 million (US$843,043), compared to HKD19.7 million in third quarter 2018.

The news was given in selected unaudited “key performance indicators” for the three months to September 30, filed with the Hong Kong Stock Exchange on Monday afternoon.

Paradise Entertainment supplies electronic gaming machines under the LT Game brand, and specialises in so-called live multi game products – featuring a live dealer but automated betting and bet settlement.

The firm has diversified into virtual reality products and also to casino management in some Macau satellite casinos.

Paradise Entertainment said that in the three months to September 30, total reported group revenue was HKD270.9 million, down 0.5 percent from HKD272.3 million in the corresponding period last year.

Total gross gaming revenue (GGR) from third-quarter gaming operations at two properties managed by Paradise Entertainment was HKD443.5 million, 9.5-percent less than in the prior-year quarter.

Aggregate GGR at Casino Kam Pek Paradise on Macau peninsula – run under the Macau gaming licence of SJM Holdings Ltd – was HKD303.7 million, a decrease of 14.8 percent from HKD356.5 million a year earlier.

Total third-quarter GGR from the gaming operations at Casino Waldo in downtown Macau – run under the licence of Galaxy Entertainment Group Ltd – was HKD139.8 million, up 4.6 percent from HKD133.7 million in third-quarter 2018.

Adjusted EBITDA from casinos under the group’s management in the third quarter was HKD26.9 million, representing a decrease of 46.5 percent from HKD50.3 million in the prior-year period, said Paradise Entertainment.

Revenue from the electronic gaming equipment and systems segment for the three months to September 30 was HKD25.7 million, compared with HKD1.9 million a year earlier. The segment’s adjusted EBITDA was a loss of HKD11.2 million, a decrease of 52.1 percent from a loss of HKD23.4 million in third quarter 2018.

For the first nine months of 2019, group-wide revenue was HKD862.9 million, representing an increase of 3.2 percent from HKD836.2 million in the corresponding period a year earlier. The firm reported adjusted EBITDA of HKD69.9 million for the nine months to September 30, down 12.0 percent from HKD79.4 million in the same period a year earlier.

In a separate filing on Monday, Paradise Entertainment said it had adopted a share award scheme for the company’s employees, including its directors. The scheme allows the company to grant incentives and/or rewards to selected people for their contribution to the group.