Paradise Entertainment posts losses of US$2.7m for H1

The Macau gaming company has posted a net loss of HK$20.8m (US$2.7m) for the first half of the year, compared to a loss of HK$109.4 in the prior-year period.

Macau.- Paradise Entertainment Ltd has reported a net loss of HK$20.8m (US$2.7m) for the first half. Revenue was up 45.5 per cent growth year-on-year. Adjusted EBITDA for the period was HK$5.1m, compared with a loss of HK$53.5m in the first half of 2020.

Some 88.3 per cent of Paradise Entertainment’s revenue for the first half came from its casino management services –up 59.7 per cent from HK$142.6m to HK$227.7m. Electronic Gaming Equipment and Systems revenue was up 73 per cent to HK$25.6m thanks to upgrades for casinos in Macau and sales of 12 slot machines in overseas markets.

Jay Chun, Paradise Entertainment’s chairman and managing director, stated: “The group will continue to invest in research and development and other costs on electronic gaming equipment and systems. 

“We believe such investment strategy will create a solid platform for our future growth in both Macau and the global market in the long run.”

In March, the company posted revenue of HK$351.7m (US$45.3m) for FY2020, a 70.2 per cent decline from the prior-year period. Revenue totalled HK$351.7m (US$45.3m) and adjusted EBITDA for the year was a loss of HK$101.1m (US$13m).

The company reported losses in all segments, especially in Electronic Gaming Equipment and Systems, which saw an 85.8 per cent fall in revenue year-on-year to HK$25.3m (US$3m) and an adjusted EBITDA loss of HK$71.6m (US$9m).

Last March, Paradise Entertainment announced its withdrawal from the management of Casino Waldo. The first two first months of the casino’s operations contributed GGR of HK$43.4m (US$6m) and an adjusted EBITDA loss of HK$17.8m (US$2m).