Paradise Entertainment withdraws from Waldo, reports 2019 results

Hong Kong-listed Paradise Entertainment has reported its 2019 annual results, including notice that it has withdrawn from management of the Casino Waldo.

As for its decision on the Waldo, the company explained, “Considering the recent requirement to invest further for additional monitoring system and equipment to Casino Waldo to comply with new regulatory requirements which we considered that might be not recovered before end of the existing gaming concession, the relative high operating costs of the casino, and also the adverse impact from the recent outbreak of a respiratory illness, following the expiration of the related service contract on February 29, 2020, the group decided to cease providing casino management services in Casino Waldo since March 1, 2020 and did not request for renewal or extension of the service contract.”

They added, “The group shall then concentrate its focus on the operations of Casino Kam Pek Paradise so as to maximise the return from the provision of casino management service in this casino to the group.”

As for the 2019 financial results, total revenue amounted to HK$1.18 billion (US$154 million), which was up 1.5 percent year-on-year, and Adjusted EBITDA came in at HK$87, which was down 28 percent on the 2018 figure.

About 85 percent of the firm’s revenue came from the operation of the two Macau casinos, and the other 15 percent from its electronic gaming equipment and systems business. The now-discarded Casino Waldo business accounted for more than a quarter of the company’s 2019 revenues.

Finally, the firm also noted that they were “proud to report that its first ever-self developed slot machines were approved by DICJ. This marked our milestone to diversify our business to slot machine segment ever since we developed the flagship product, the LMG machines, in Macau. We have also started to debut our self developed slot machines to Americas and South East Asian markets in various casinos or gaming establishments to emerge as one of the future leaders in gaming equipment.”