Paradise Entertainment, a gaming systems supplier, recorded a loss of HK$11.8 million ($1.5 million) for the six months ended June 30, compared to a profit of HK$50.46 million for the corresponding period in 2014.
Revenue for the period decreased to HK$571 million, representing a drop of 6.4 percent, which was attributable to the decrease in gross gaming revenue from the group’s casino management business. This was “mainly driven by the diminishing economic growth rate recorded in China and the widening anti-corruption campaign initiated by the central government of China.”
“In addition, the Group’s revenue was also undermined by a surge of overall operating expenses, particular the ever increasing labor costs.”
The company’s adjusted EBITDA dropped 66.3 percent to HK$49.8 million.
In June, the group installed 172 slot machines at Waldo Casino, “broadening the offering of the casino by providing a variety of choices to players, which brought about more revenue for the Group.”
Sales and revenue sharing of Live Multi Game Terminals contributed 20 percent of the total revenue.
China's efforts to stamp out cross border gambling are showing no signs of abating, with the Chinese Minister of Public Security, Zhao Kezhi, saying that the strictest measures are needed to eradicate the practice.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.