Paradise Entertainment swung to an adjusted EBITDA loss in Q1, as revenue from both its casino services business and its electronic gaming machine division declined.
In a filing with the Hong Kong Stock Exchange, the company reported revenue of $235.3 million ($30.2 million), down 9.8 percent. Adjusted EBITDA was a loss of $10.1 million, compared with a profit of $0.7 million in the prior year period.
The company runs gaming operations at the Casino Kam Pek Paradise and the Casino Waldo in Macau and sales and leases electronic gaming equipment.
Total gross gaming revenue from the gaming operations at Casino Waldo was HK$117.2 million in Q1 2017, representing an increase of 4.5 percent from HK$112.1 million in Q1 2016.
GGR from Casino Kam Pek Paradise fell 7.5 percent to HK$274.9 million.
Adjusted EBITDA from the provision of casino management services was a loss of HK$26.4 million in Q1 2017, narrowing from HK$25.9 million in Q1 2016. Adjusted EBITDA from the development, sale and leasing of electronic gaming equipment and system was a profit of HK$23.6 million in Q1 2017, representing a decrease of 29.3 percent from HK$33.4 million in Q1 2016.
Casino management services contributed more than 79 percent of revenue for the period, up from 74.5 percent in the prior quarter.