Macau’s Paradise Entertainment fell to a loss of HK$111.3 million (US$14.4 million) in the six months to 30 June 2020 as COVID-19 impacted all of its gaming segments.
The results, down from a profit of HK$23.8 million (US$3.1 million) over the same period last year, came on the back of a 70.1% decline in group-wide revenue to HK$177.3 million (US$22.9 million), resulting in an Adjusted EBITDA loss of HK$53.5 million (US$6.9 million) compared to Adjusted EBITDA of HK$63.3 million (US$8.2 million) in 1H19.
All segments were negatively affected, with casino revenue at Casino Kam Pek Paradise and Casino Waldo down a combined 66.8% to HK$165.9 million (US$21.4 million). Paradise announced earlier this year that it had ceased providing casino management services at Casino Waldo from 1 March 2020 – a decision it said on Wednesday “has proved itself to be the right move for our cost control program.” As at 30 June 2020, the Group had a total of 49 gaming tables in Casino Kam Pek Paradise under the group’s management, 32 of which were in operation, the company added.
Paradise saw a 41.7% decrease in revenue from the leasing of electronic gaming equipment and systems to HK$1.4 million (US$181,000) in 1H20 and an 89.2% decrease from sales of electronic gaming equipment and systems to HK$9.6 million (US$1.2 million).
Most sales in the latter segment were derived from the provision of upgrading services to 136 Live Multi-Game (LMG) terminals at various casinos in Macau, the company said.
Paradise also noted that GGR from LMG terminals as a percentage of casino-wide GGR at Casino Kam Pek Paradise increased from 38.8% to 55.4% during the first half of 2020.
“We observed their distinctive features of being capable to fit well and [show] harmony to the specific measures imposed by DICJ to maintain a safe distance between gaming tables, and between gaming machines,” Paradise said.
“The beauty of the LMG machines is to offer a more private, comfortable, spacious gaming environment for individual gaming patrons than traditional gaming tables could provide. This has given the Group encouragement when designing and developing gaming products – the objectives should not only be to offer gaming satisfaction to patrons but also highlight the importance of facilitating and prompting public health awareness on casino management strategy as a whole.”
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