Paradise Entertainment posts US$11.2m loss for H1

The company’s net loss for the period widened three-fold on a year-on-year basis.

Macau.- Paradise Entertainment Ltd has seen its loss widen further. For the first half of the year, the company posted a net loss of HK$87.9m (US$11.2m). That compares to a net loss of HK$20.8m (US$2.7m) for the first half of last year.

Revenue was down 29.8 per cent year-on-year to HK$181.1m. Group-wide EBITDA was negative at HK$64.4m compared to a positive figure of HK$5.1m in the first half of 2021. As of June 30, the group had cash and cash equivalents of nearly HK$36.7m and net working capital of just over HK$73m.

During the first half, Paradise entered into a HK$60m unsecured 10 per cent interest rate loan agreement with Jay Chun, its chairman and managing director, to “strengthen the group’s liquidity”. After the reporting period, Chun agreed to double the line of credit to HK$120m, “repayable on December 31, 2023”.

The company has a service agreement for a satellite gaming venue at Casino Kam Pek Paradise. EBITDA at the casino in the first half slipped to a negative HK$23.3m, while the venue’s adjusted EBITDA was positive at HK$39.1m.

EBITDA from Paradise Entertainment’s electronic gaming equipment and systems segment was negative by HK$30.4m for the six months ended June 30, versus HK$14.3m last year. The group attributed the change to the decrease in revenue from the provision of upgrading services to Live Multi-Game terminals in Macau.

Despite the challenging business environment, Paradise Entertainment revealed it has invested HK$22.0m in “research and development and other costs on electronic gaming equipment and systems… to enhance its product specifications and competitive advantages, attract potential customers, and increase market penetration.”