Hong Kong Stock Exchange-listed Palasino Holdings Ltd has reported a sharp 81 percent decline in annual profits, despite an overall increase in revenue.
The company recently announced a profit attributable to shareholders of just above HK$8.5 million ($1.1 million) for the fiscal year ending March 31st, 2024, marking a significant 81 percent drop from the HK$44.2 million ($5.6 million) profit recorded in the previous financial year.
The substantial decrease in profit is primarily attributed to several one-off expenses and increased costs related to the development of its online gaming business.
The company, a subsidiary of developer Far East Consortium (FEC), spent approximately HK$24 million ($3 million) on listing expenses associated with its global offering in March 2024.
Still, Palasino reported a surge in net cash from HK$16 million ($2 million) in March 2023 to HK$244 million ($31.2 million) in March 2024, primarily due to proceeds from the same global offering.
Palasino Holdings Ltd, a European gaming and leisure firm incorporated in the Cayman Islands, focuses on ‘entertainment, gaming and leisure’.
Its parent company FEC is a joint venture partner with The Star and a 25 percent investor in the multi-billion dollar Queen’s Wharf Brisbane project.
Palasino currently manages one integrated casino and resort and two full-service casinos in the Czech Republic, offering a range of slot machines and table games. Its hospitality division owns and operates three hotels in Germany and one in Austria, providing accommodation, catering, conference facilities, and leisure services.
The Group’s operations are divided into two main business areas: land-based gaming and hospitality services, with land-based gaming contributing 74 percent and 71 percent to the group’s hotel revenue in the fiscal years ending March 31st, 2023, and 2024, respectively.
Despite economic challenges such as COVID-19 restrictions, the Ukraine-Russia conflict, and rising interest rates, Palasino defended it maintained a robust financial position, with cash reserves surpassing debt levels.
In February 2024, the Group acquired a property in Mikulov, Czech Republic, with plans to convert it into its fourth casino. Additionally, in April 2024, the Group’s subsidiary, Palasino Poland Sp. z.o.o., submitted its first casino license application in the Lubuskie region of Poland, marking its entry into the Polish market.
Palasino also aims to expand its online gaming business, leveraging a license approved by the Malta Gaming Authority in November 2022, with plans underway to apply for an online gaming license in the Czech Republic by the end of the fiscal year 2025.
The Group is exploring B2B opportunities through its subsidiary, Palasino Technology (HK) Limited, which recently signed a memorandum of understanding with Taiwanese company GameSparcs Co., Ltd. to license online game content targeting Asian markets.
