Macau’s Paradise Entertainment Ltd has reported a profit of HK$60.9 million (US$7.8 million) in 2023, reversing a loss of HK$166.3 million (US$21.3 million) a year earlier primarily due to the return of patrons to the peninsula casino it manages: Casino Kam Pek.
In a Tuesday filing, Paradise said the improved results came on the back of a 113% increase in group-wide revenue to HK$634.3 million (US$81.1 million) in 2023, of which HK$564.8 million (US$72.2 million) came from the provision of casino management services at Kam Pek. The casino, operated under the casino under the concession of SJM Resorts S.A, ran 24 traditional gaming tables, 10 Live Multi-Game (LMG) tables, 860 LMG terminals and 96 slot machines on average in 2023.
Revenue from the sale of electronic gaming equipment and systems, which includes the LMG set-up, increased from HK$3.5 million (US$447,000 million) in 2022 to HK$53.6 million (US$6.9 million) in 2023, although revenue from the leasing of such systems declined slightly to HK$3.24 million (US$414,000). Paradise said it sold 260 LMG terminals in 2023 compared with none the year before.
Group-wide Adjusted EBITDA of HK$162.8 million (US$20.8 million) reversed an Adjusted EBITDA a loss of HK$38.0 million (US$4.9 million) for the year ended 31 December 2022.
Looking ahead, Paradise said it was “actively seeking” opportunities to expand its LMG business internationally, with the Philippines a clear target in the short-term.
“The Philippines market has good potential as the Philippines already holds the title of the largest electronic gaming machine market in Asia, offering better flexibility with numerous casinos and a variety of gaming types,” the company said.
“Further, the Philippines market is relatively more international and adheres to general standards for gaming machines aligning with global norms. The electronic gaming equipment and systems developed for the Philippines market can normally be promoted to other gaming markets in the world with little modification.
“The Group is ready to go into [the Philippines and other Southeast Asian] markets to expand its businesses in these … markets, while it will continue to explore business opportunities in the North American gaming markets.”
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