GGRAsia – Paradise Entertainment Q1 revenue shrinks to US$36.8mln

Paradise Entertainment Q1 revenue shrinks to US$36.8mln

May 16, 2019 Newsdesk Latest News, Macau, Top of the deck

Casino equipment maker and casino operations manager Paradise Entertainment Ltd says its unaudited revenue shrank to HKD288.9 million (US$36.8 million), in the first quarter of 2019, 6.3 percent less than a year earlier.

In an update to the Hong Kong Stock Exchange published on Wednesday, Paradise Entertainment said first-quarter adjusted earnings before interest, taxation, depreciation and amortisation fell to HKD31.4 million from HKD51.8 million, a 39.4-percent decrease compared to the same period last year.

Paradise Entertainment makes the LT Game brand of casino equipment and manages casinos, namely the Casino Kam Pek Paradise (pictured) and Casino Waldo, both located on the Macau Peninsula.

It is among the companies listed in Hong Kong that choose to report certain unaudited results quarterly, even though the rules of the exchange require them to report their financial results comprehensively only every six months.

Paradise Entertainment said first-quarter revenue from the casinos it manages grew by 0.3 percent to HKD258.3 million. Gross gaming revenue at those casinos grew by 0.1 percent to HKD468.1 million.

Revenue from making and selling electronic gaming equipment and systems shrank by 39.8 percent to HKD30.6 million, down from HKD50.8 million in the prior-year quarter.

As of March 31, Paradise Entertainment had HKD330 million in the bank or in cash, and held chips worth HKD32 million. It had outstanding secured bank borrowing of HKD87.8 million, including HKD5.1 million payable within one year.

In April, Paradise Entertainment announced that it would ask shareholders at its annual general meeting in May to give the directors new mandates to buy back up to 10 percent of the issued share capital, and allot new shares up to a nominal amount of 20 percent of the issued share capital.

The buyback, if done in full, would have the effect of increasing Paradise Entertainment chairman Jay Chun’s stake in the company to about 66.63 percent from about 59.96 percent.