Paradise swings to 2018 profit

Paradise Entertainment swung to a profit in 2018, helped by an increase in revenue from casino management services at its Kam Pek Paradise casino and a jump in sales of electronic gaming equipment.

Group profit was HK$53.2 million ($6.7 million) compared to a loss of HK$47.5 million for the prior year.

Total reported revenue was HK$1.16 billion, up 15.1 percent. The casino services division saw revenue rise to $1.06 billion, from $973.9 million, while electronic gaming sales surged to $88.6 million from $22.7 million the prior year.

Revenue from Kam Pek Paradise rose about 14 percent to $780.2 million, while revenue at Casino Waldo slipped to $286.7 from $292.1 million.

The adjusted EBITDA loss in the electronic gaming division narrowed to $50.7 million, a decrease of 34.1 percent from the prior year’s loss. The group has increased its investment into research & development and other costs on upgraded machines and systems.

The Hong Kong-listed company said it was cautiously optimistic about prospects for 2019, given the stabilising Chinese economy, rising middle class and as Macau begins to reap benefits from the Hong Kong-Macau-Zhuhai bridge.

It said the new technical standards from The Gaming Inspection and Coordination Bureau, introduced in late 2017, had boosted demand for replacement and upgrades of live multi-game terminals and that growth is expected to continue this year.

“Casino operators’ universal quest for more seats, fewer tables, lower minimum bets and higher yields translates into a future need for solutions that could help them achieve higher efficiency and to optimise their table yields,” it said.

“Aside from LMG machines, several of our new slot games are now fully tested and are soon ready to debut in the market. The group strengthened our sales and marketing teams targeting casino operators in Macau, South East Asia and North America,” it said.