Macau’s Paradise Entertainment Ltd reported a slight HK$1.34 million (US$170,750) loss for the six months to 30 June 2023, narrowed from a prior year loss of HK$93.6 million (US$11.9 million) thanks to an increase in revenue from its casino management business.
Group-wide revenue of HK$246.7 million (US$31.4 million) was 36.2% higher year-on-year, with management of Casino Kam Pek Paradise contributing HK$240.0 million (US$30.6 million) – up 55.8% year-on-year.
Paradise pointed to the easing of Macau’s border restrictions in January for the improved result, stating, “As entry quotas were dropped on 6 February 2023, cross-border travel between Mainland China, Hong Kong and Macau has been fully resumed. All these factors have contributed to the increase in arrivals to Macau which also led to an increase in the number of patrons to the casino under the Group’s management in Macau during the six months ended 30 June 2023.
“However, the increase in the total reported revenue of the Group was partially offset by the decrease in revenue from the sale/leasing of electronic gaming equipment and systems in overseas markets.”
Revenue from the sale and leasing of EGM equipment ultimately plummeted in 1H23, from HK$27.1 million (US$3.5 million) a year earlier to just HK$3.9 million (US$497,000), with Paradise pointing out that it had previously determined to focus its overseas EGM business on the sale rather than leasing of equipment.
“The Group managed to dispose of all the units in the year ended 31 December 2022 and accordingly, there was no revenue from the sale/leasing of electronic gaming equipment and systems in overseas markets recorded for the six months ended 30 June 2023,” it explained. However, “As the global economic growth is expected to be on the rising trend after the pandemic, the Group has planned to invest relatively more in developing innovative new electronic gaming equipment and systems for overseas markets going forward, in particular the North American markets.”
Paradise reported group-wide Adjusted EBITDA of HK$31.0 million (US$4.0 million) in H1, reversing a HK$64.4 million (US$8.2 million) Adjusted EBITDA loss a year earlier, but has not recommended payment of an interim dividend for the period.
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