Macau’s Paradise Entertainment Ltd has reported a loss of HK$192.1 million (US$25 million) for FY2020, impacted by a 70.2% year-on-year decline in revenue to HK$351.7 million (US$45 million) as a result of the COVID-19 pandemic.
Adjusted EBITDA for the year was a loss of HK$101.1 million (US$13 million), which included losses in all segments, particularly in Electronic Gaming Equipment and Systems. Paradise said it sold 20 LMG terminals, 23 slot machines and provided upgrading services to 438 LMG terminals in 2020 but suffered an 85.8% fall in segment revenue to HK$25.3 million (US$3 million) and an Adjusted EBITDA loss of HK$71.6 million (US$9 million) on research and development expenses.
The one casino still under the group’s management, Casino Kam Pek Paradise, saw revenue fall 56.2% year-on-year to HK$556.6 million (US$72 million), resulting in an Adjusted EBITDA loss of HK$42.7 million (US$5.5 million). Paradise stopped providing management services at Casino Waldo from 1 March 2020 but its two months of operations under the group was enough to contribute GGR of HK$43.4 million (US$6 million) and an Adjusted EBITDA loss of HK$17.8 million (US$2 million).
Despite last year’s struggles, Paradise Chairman and Managing Director Jay Chun said he was confident in a strong recovery – driven by the development of new slot machine titles now approved and ready for deployment into the Macau market.
“The Group is dedicated to continuous innovation in the gaming equipment industry using top-notch and innovative technology to create more good gaming products that are primarily catered for the mass market,” Chun said.
“We trust technology and innovation will be the key to driving future growth despite the pandemic. The Group shall continue to focus on optimizing table productivity in the casino under our management by applying cutting-edge gaming technology that has enabled our GGR per table, per day in the mass market to rival the tables in other casinos in Macau.
“The Group will follow our unique business model to embracing more synergies between our two business segments to complement the development of our high-tech products.”
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