Paradise Entertainment reports US$10.6m H1 loss as revenue falls 67%
The group said lower LMG equipment sales and higher research and development costs weighed on its first-half performance.
Hong Kong.- Paradise Entertainment has reported a net loss of HK$82.6m (US$10.6m) for the first half of 2026, compared with a profit of HK$29m (US$3.7m) in the same period last year. The company had previously warned that it expected to record a loss of around HK$85m for the six months to June 30.
Revenue from continuing operations fell 67.1 per cent year-on-year to HK$41.3m (US$5.3m), while adjusted EBITDA was negative HK$74.4m (US$9.5m), according to the company’s unaudited interim results. The decline was mainly driven by lower revenue from the group’s electronic gaming equipment and systems business. Revenue from the segment fell 74.2 per cent to HK$32.3m (US$4.1m), while adjusted EBITDA turned to a loss of HK$54m (US$6.9m), compared with a profit of HK$48.8m (US$6.3m) a year earlier.
Paradise Entertainment attributed the decline primarily to lower sales of its live multi-game (LMG) terminals and systems in Macau. The company said some customers may have postponed purchases in anticipation of the launch of its next-generation LMG platform, Black Coral.
Jay Chun, chairman and managing director of Paradise Entertainment, said: the Group continues to focus on its core strategy of prioritising mass market gaming offerings “through dedicated investments in innovative technology and electronic gaming solutions.” He noted that Macau recorded approximately 20.9 million visitor arrivals in the first half of 2026, up 9.0 per cent year-on-year and that the expanding mass-market segment “directly aligns with the Group’s primary technological competencies”
The new Black Coral platform is currently undergoing final testing, with Paradise Entertainment expecting to obtain regulatory approval for a commercial launch in the second half of 2026. The system features upgraded player interfaces and floor-management software, including real-time data analytics, customised multi-bet capabilities and data visualisation tools.
The group reported HK$9m (US$1.2m) in revenue from professional advisory and other services during the period. The business, established through a partnership with a Macau gaming concessionaire in December 2025, contributed a HK$6.1m adjusted EBITDA loss.
The group is also pursuing international expansion. In June, it was granted Approved Manufacturer status by Singapore’s Gambling Regulatory Authority, opening the way for direct commercial sales and system placements with casino operators in the market.
