Macau’s Paradise Entertainment has outlined its efforts to expand both its gaming equipment supply business and casino management experience across Asia after admitting it will suffer a material decline in revenue and profit once its contract to provide management services to satellite casino Kam Pek Paradise expires at the end of the year.
The update formed part of the company’s 1H25 results announcement, published overnight, in which Paradise reported a 19.4% year-on-year increase in group-wide revenues to HK$507.9 million (US$65.2 million). Ironically, the improvement was driven by Casino Kam Pek Paradise, where GGR grew by 7.2% to HK$698.9 million (US$89.7 million) and net revenue by 7.3% to HK$382.6 million (US$49.1 million).
Paradise’s supplier arm, LT Game, showed more significant growth but remains a smaller contributor to the group as revenue climbed 83.7% to HK$125.3 million (US$16.1 million). Importantly, almost all of this, HK$125.0 million (US$16.0 million), was generated by the sale and lease of gaming equipment in Macau with just HK$300,000 (US$38,525) generated overseas.
Nevertheless, the company acknowledged the need to expand its business operations, stating, “Based on the Board’s preliminary assessment by reference to information currently available, the Board expects to report a material reduction in the reported revenue and profit attributable to the shareholders after the expiry of the service agreement between the Group and SJM Resorts [for the management of Casino Kam Pek Paradise].
“However, building on its established expertise and operational experience, the Group remains committed to actively pursuing new opportunities both in Macau and across international markets. Leveraging its proven track record in casino management and electronic gaming systems, the Group aims to enhance strategic partnerships and expand its footprint in jurisdictions with promising growth potential.”
On its plans for LT Game and following the recent launch of a new production facility in Macau, Paradise added, “Leveraging its end-to-end capabilities, from game design and gaming machine manufacturing to delivering engaging customer experiences, the Group is actively extending its industry reputation and expertise beyond Macau, into emerging gaming markets such as the Philippines, Sri Lanka, Malaysia, etc.
“By harnessing its proven expertise and innovative technologies, the Group aims to forge strategic partnerships, deploy tailored gaming products and systems and contribute to the modernization of casino operations across Asia and beyond.
“This expansion not only reinforces the Group’s status as a leading gaming solutions provider but also aligns with its long-term vision of sustainable and diversified growth in emerging gaming markets.”
Paradise’s 1H25 results included a 43.4% increase in Adjusted EBITDA to HK$211.8 million (US$27.2 million), of which its casino management arm contributed HK$170.5 million (US$21.9 million), up 18.6%, and LT Game HK$48.8 million (US$6.3 million), up 336%.
The company declared an interim dividend of HK$0.075 per share, amounting to a total payout of HK$78.9 million (US$10.1 million).
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