Paradise Entertainment sees H1 revenue fall 30%

Home » Paradise Entertainment sees H1 revenue fall 30%

Paradise Entertainment reported total revenue of HK$181.1m (US$23.1m) in H1 2022, a 30% decrease year on year.
This disappointing result is attributed to a decrease in revenue from the provision of casino management services in Macau, as well as a decrease in sales and leasing of electronic gaming equipment and systems in the region.
The revenue loss was offset in part by improved revenue performance in the sale and leasing of gaming equipment and systems in international markets.

Adjusted EBITDA for the period was HK$64.4m, compared to HK$5.1m profit the previous year.

Gross profit was HK$20.26 million, a significant decrease from the previous year’s total of HK$111 million. The company is responsible for HK$87.9 million of this loss.

“The outbreak of a respiratory illness caused by a novel coronavirus since early 2020 continues to have negative impacts on the business environment and the group’s operations,” the company said.

“As a result, the group’s financial positions and performance were impacted in a variety of ways, including an adverse impact on revenue and the recognition of losses from both the casino management services segment and the gaming systems segment for the six months ended 30 June 2022.”

Despite the poor financial results, the directors of Paradise Entertainment remain confident that the company has “adequate resources to continue in operational existence for the foreseeable future.”

Finally, the company expressed concerns about the current concession contract between the Macau Government and SJM Holdings, which is set to expire on December 31. If this contract is not renewed or extended further, Paradise will lose its primary source of revenue.

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