Paradise Ent. swings to 1H EBITDA profit as revenue gains

Paradise Entertainment returned to profit at the EBITDA level in 1H21 as revenue from all key areas of its business improved.

The Hong-Kong listed company said total revenue rose 45.5 percent over the prior-year period to HK$257.9 million due to an increase in revenue from the provision of management services to the Kam Pek Paradise Casino in Macau and from the sale of electronic gaming machines.

Adjusted EBITDA was $5.1 million compared with a loss of $53.5 million a year earlier. The net loss narrowed to $21.5 million from $111.3 million.

The group reported revenue of $227.7 million from casino management services, up from $142.6 million last year, which benefited from three months’ contribution from Casino Waldo. The company stopped providing management to the latter casino in March of last year.

Sales of electronic gaming equipment and systems rose to $25.6 million from $9.6 million a year earlier.

Despite the improvement, the company said 2021 continues to be a “challenging and turbulent year.” On the bright side, it said it has received encouraging feedback from the debut of its slot machines in North America, including new orders and re-orders from existing customers.

The group also noted that its key Live Multi-Game terminals were performing strongly, helped by a greater focus on health and safety stemming from the pandemic.

“We were delighted that the distinctive features of our innovative flagship products, the LMG machines, have continued to perform well,” it said in a statement. “LMG provides gaming patrons a more private, spacious and safe environment which are well aligned with the specific safety measures and requirements imposed by the relevant authority to maintain a safe distance between gaming tables, and between gaming machines.

“The outperformance of the LMG has highlighted the importance of taking the prevailing health issues into account when designing and developing gaming products as well as on casino management strategy, where technology can facilitate such attainment.”