Macau’s Paradise Entertainment Limited reported a loss of HK$88.37 million (US$11.3 million) for the 12 months to 31 December 2021, narrowed from a HK$192.11 million (US$24.6 million) loss in 2020 on the back of rising revenues in both its casino management and electronic gaming equipment segments (EGE).
The group’s FY21 financial results, published Thursday, show a 40.5% increase in group revenue to HK$494.1 million (US$63.2 million), while an Adjusted EBITDA loss of HK$18.4 million (US$2.4 million) was narrowed from a HK$101.1 million (US$12.9 million) EBITDA loss a year earlier.
The results included a 36.8% increase in gross gaming revenue at Casino Kam Pek Paradise, where Paradise provides casino management services, to HK$761.7 million (US$97.4 million) with the property returning to positive EBITDA of HK$42.3 million (US$5.4 million). The company previously ceased providing management services to a second casino, Casino Waldo, in March 2020.
Revenue from the EGE and systems segment grew 209.9% to HK$78.4 million (US$10.0 million), mainly derived from the sale of 116 LMG (live multi-game) terminals and the provision of upgrading services to 1,607 LMG terminals in Macau. Paradise also sold 99 slot machines in overseas markets. A
The EGE and systems segment recorded an Adjusted EBITDA loss of HK$21.2 million (US$2.7 million), narrowed from a loss of HK$71.6 million in 2020. The company said it invested HK$52.6 million (US$6.7 million) into research and development within the segment in 2021 “in order to enhance its product specifications, competitive advantages, attract more demand and increase market penetration and shares in the long run.”
Paradise Chairman and Managing Director Jay Chun said the company was encouraged by its moves into the North American market, stating that its self-developed machines under the LT Game brand “were characterised by popular games which are straight-forward, simple and perfectly suited for high denomination areas with non-progressive, standalone progressive and linked progressive options.”
However, he warned of further headwinds in the short-term due to the COVID-19 pandemic.
“We expect to continue facing strong and unsteady headwinds, especially with the fluctuations of the number of infected cases due to the Covid-19 pandemic with further uncertainties as to whether other unknown new virus variants may arise thereafter,” he said.
“We will continue to assess the impact of the pandemic on our operation and financial performance and closely monitor our exposure to the risks and uncertainties in connection with the pandemic and will take appropriate measures as necessary to minimise the risks.”
