for the first half of last year.<\/a><\/p>\n\n\n\nRevenue was down\u00a029.8 per cent\u00a0<\/strong>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.<\/p>\n\n\n\nDuring the first half, Paradise entered into a HK$60m unsecured 10 per cent interest rate loan agreement with\u00a0Jay Chun<\/strong>, its chairman and managing director, to “strengthen the group’s liquidity”.\u00a0After the reporting period, Chun agreed to double the line of credit to HK$120m, “repayable on December 31, 2023”.<\/p>\n\n\n\nThe company has\u00a0a service agreement for a satellite gaming venue at Casino Kam Pek Paradise<\/strong>. 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.<\/p>\n\n\n\nEBITDA 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.<\/p>\n\n\n\n
Despite the challenging business environment, Paradise Entertainment revealed it has invested HK$22.0m<\/strong>\u00a0in \u201cresearch and development and other costs on electronic gaming equipment and systems\u2026 to enhance its product specifications and competitive advantages, attract potential customers, and increase market penetration.”<\/p>\n","protected":false},"excerpt":{"rendered":"The company\u2019s net loss for the period widened three-fold on a year-on-year basis.<\/p>\n","protected":false},"author":176,"featured_media":14896,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Paradise Entertainment Ltd reported a significant widening of its net loss to HK$87.9m for H1, alongside a 29.8% revenue decline and negative group-wide EBITDA. The company secured a HK$120m loan from its chairman to bolster liquidity amidst challenging market conditions in Macau, while continuing R&D investments in electronic gaming equipment.","focusai_entities":"Paradise Entertainment Ltd, Jay Chun, Casino Kam Pek Paradise","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.8), product_ux (0.7), tech_data (0.7), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Capital Structure Strategy?","query":"Given the significant liquidity injection from the chairman, what is the long-term capital structure strategy for Paradise Entertainment, particularly concerning its debt-to-equity ratio and future financing needs beyond December 2023?"},{"label":"R&D Impact on Revenue?","query":"How does the HK$22.0m R&D investment in electronic gaming equipment align with the declining revenue from Live Multi-Game terminal upgrades, and what specific product innovations are expected to drive market penetration and competitive advantage in the Macau market?"}],"footnotes":""},"categories":[157,16338],"tags":[23722],"class_list":["post-32981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-paradise-entertainment"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=32981"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32981\/revisions"}],"predecessor-version":[{"id":33006,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/32981\/revisions\/33006"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/14896"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=32981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=32981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=32981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}