Macau’s Paradise Entertainment Limited has issued a profit warning on an expected 63.5% year-on-year decline in profit to HK$139.4 million (US$17.8 million).
In a filing, Paradise said the decline was largely due to the early closure of satellite casino operations at Kam Pek Paradise on the Macau peninsula, which had operated under the license of SJM Resorts S.A and where the company provided casino management services.
SJM ultimately determined the casino would close from 2 December 2025, with Paradise noting that this left it one month short on anticipated revenues while also having to reimburse SJM for employee benefits and compensation to the tune of HK$42.1 million (US$5.4 million).
“The non-renewal of the Service Agreement and the cessation of operations of the Casino had an adverse impact on the business performance of the casino,” the company stated.
“The early termination of operations of the casino on 2 December 2025 resulted in a loss of nearly one month of anticipated income for the Group in the reporting period when compared with the revenue reported for the preceding period. Furthermore, the cessation of operations of the casino necessitated the group’s payment to its employees and reimbursement to SJM Resorts for employees’ compensation and benefits, including long service payments.”
Also impacting Paradise’s FY25 profit was a decline in revenue from the sale and leasing of electronic gaming equipment during the period – particularly with regard to the sale of live multi game (LMG) terminals and systems in Macau. This fell by 45.3% or HK$165.5 million (US$21.2 million) in 2025, the company explained.
“In the preceding period, the LMG terminals achieved widespread popularity due to their innovative advancements in gaming technology and the Group recognised significant revenue from the sale of LMG terminals and systems,” Paradise said.
“The sale of the LMG terminals weakened during the reporting period, primarily because customers might opt to postpone their purchases in anticipation of the Group’s upcoming LMG system, namely “Black Coral”, which was first announced by the Group in late 2024.
“Black Coral, currently planned for launch in 2026, is designed to incorporate advanced technological features, including integrated analytics and widgets that present historical and real-time gameplay data in a clear and accessible format. By highlighting observable patterns derived from actual gameplay outcomes through intuitive visualisation, the system aims to enhance player engagement and the overall gaming experience.”
Paradise added that revenue recognition of the new “Black Coral” LMG system had not yet occurred but said it anticipates the product will enhance player engagement and accelerate the replacement of existing LMG terminals and systems in operation.
Paradise is scheduled to release its full results for 2025 by the end of the month.
