Macau’s Paradise Entertainment says it has developed a range of smart and 5G wireless products that can be used in the home and eventually integrate with the company’s gaming and entertainment businesses at it looks to diversify its revenue streams.
According to information contained within Paradise’s 1H21 results announcement, which saw it slip to a loss of HK$21.5 million (US$2.8 million), the products form part of a broader research and development strategy which has primarily been focused on the company’s Live Multi-Game terminals.
While Paradise will “continue to invest in research and development … on electronic gaming equipment and systems” given the outperformance of those products during COVID-19, it said it has also been increasingly investing in research and development of 5G, AI and other related high-tech products.
“The Group’s latest research accomplishments including smart wear, smart home and 5G wireless terminal high-tech products adhere to the trend of transformation of high-tech development in wireless edge of 5G and AI,” Paradise said.
“These high-tech products enhance human being’s quality of life significantly in areas of education, sports and living and are highly acclaimed by sports lovers and parents. In the years to come, we are confident that these high-tech products will be more closely integrated with entertainment business for the continuous enhancement of players’ experience and generate fresh revenue streams for the Group.”
The search for new revenue streams comes amidst ongoing challenges as a result of COVID-19, with the 1H21 loss – narrowed from a loss of HK$11.3 million (US$1.5 million) a year earlier – coming despite an improved performance from its casino management and LMG segments.
Total revenue of the group increased of 45.5% year-on-year to HK$257.9 million (US$33.1 million), with Adjusted EBITDA of HK$5.1 million (US$655,000) versus an EBITDA loss of HK$53.5 million (US$6.9 million) in 1H20.
The company’s casino management services at Casino Kam Pek Paradise generated GGR of HK$416.9 million (US$53.5 million), up 58.9% year-on-year, while Adjusted EBITDA of HK$39.1 million (US$5.0 million) also reversed a loss of HK$35.9 million (US$4.6 million) in the prior year period. Paradise ceased managing Casino Waldo in April 2020.
Meanwhile, revenue from the electronic gaming equipment and systems business segment almost tripled to HK$30.2 million (US$3.9 million), of which the sale of electronic gaming equipment and systems, including LMG machines, contributed HK$25.6 million (US$3.3 million).
“In view of the increasing awareness of health issues, we were delighted that the distinctive features of our innovative flagship products, the LMG machines, have continued to perform well.,” Paradise said.
“LMG provides gaming patrons a more private, spacious and safe environment which are well aligned with the specific safety measures and requirements imposed by the relevant authority to maintain a safe distance between gaming tables, and between gaming machines.
“The outperformance of the LMG has highlighted the importance of taking the prevailing health issues into account when designing and developing gaming products as well as on casino management strategy, where technology can facilitate such attainment.”
Paradise did not declare a dividend for the six months to 30 June 2021.
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