Macau-based Paradise Entertainment saw its revenue grow 15.2% to HK$563.9 million in the six months to 30 June 2018, pushing the company to a HK$26.3 million profit after suffering a loss of HK$35.3 million in the same period last year.
Paradise said the improved results were mainly due to an increase in revenue from the provision of casino management services following an increase in GGR from the casinos under the group’s management as well as an increase in revenue from the sale of electronic gaming equipment and systems.
The company manages two Macau casinos – Casino Kam Pek Paradise under license of SJM and Casino Waldo under license of Galaxy – and is also the developer and distributer of Live Multi-Game (LMG) systems Macau-wide.
Adjusted EBITDA from the casinos under its management increased 175.4% to HK$78.5 million in 1H18 due to increased GGR, while Adjusted EBITDA from the electronic gaming equipment and systems segment was a loss of HK$4.4 million, representing a decrease of 59.6% from the loss of HK$10.9 million the segment booked in 1H17.
The sale of electronic gaming equipment and systems contributed Adjusted EBITDA of HK$22.0 million, up from HK$2.8 million.
Paradise increased the number of LMG terminals at Kam Pek Paradise from 946 to 1,000 in the six months to 30 June 2018 and at Casino Waldo from 306 to 416. However, the improvement in casino operations came entirely from Kam Pek Paradise where gross gaming revenue increased 17.0% to HK$687.5 million. Casino Waldo decreased 4.8% to HK$237.0 million.
Paradise revealed earlier this year that it had already deployed 364 new LMG terminals in just three months through March, almost five times more than the total deployed in all of 2017. That figure included 217 terminals at MGM Cotai’s X-Stadium in February.
In its results announcement released overnight, Paradise said it was confident that it would maintain its recent momentum due to the development of new technologies and the recent introduction by the Macau government of new Technical Standards governing ETGs.
“The publication of the Technical Standards has accelerated the upgrading and replacement cycles of all the deployed DETG machines of the group in Macau,” the company said. “Being the inventor, patent-owner and sole-supplier of DETG machines, the group is technically competent and well-positioned to provide ready-made services to offer supports to casinos currently equipped with DETG machines and assist them in meeting the requirements of the Technical Standards.
“The group strives to strengthen its leading position through technological innovation. In addition to LMG, the group’s flagship product, the group has also been investing in developing other high-tech electronic gaming products. During the six months ended 30 June 2018, the group has launched some of its newly developed gaming products to the market including X-Stadium Live, Intelligent Card Shoes and Quick Foreign Exchange machines in casinos in Macau and the US.
“The group will continue to introduce new gaming products such as slot machines and automatic baccarat to the market in near future. The launch of new products is expected to add long-term sustainable growth impetus to the group.”
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