Gaming equipment company Paradise Entertainment is expecting a significant drop in its profit for FY25, following the closure of its satellite casino operation under SJM last year.
In a Monday filing, the group noted that profit is expected to dip to HK$139.4 million ($17.83 million), down by 63.5 percent yearly.
One of the primary reasons for the drop was the cessation of its casino management service at Kam Pek Casino – which closed on December 2nd. This resulted in a drop of HK$85.2 million ($10.9 million), or 11.9 percent, in the group’s revenue year-on-year. The group also was hit with a payment to employees and reimbursement to SJM for gaming operation staff at Kam Pek Paradise totaling HK$42.1 million ($5.38 million).
The group had initially hoped to keep the casino open until the final termination date of December 31st, laid out by the government, however SJM informed the company in November that its agreement would be terminated on December 2nd.
‘The early terminations of operations of the casino on 2 December 2025 resulted in a loss of nearly one month of anticipated income for the group’, highlighted Paradise.
Adding to its financial concerns was a significant drop in revenue from the sale and/or leasing of electronic gaming equipment systems, primarily its live multi game (LMG) terminals and systems in Macau.
Revenue from the segment fell by HK$165.5 million ($21.16 million), or 45.3 percent, compared to 2024, as LMG terminal sales were weakened as customers postponed purchases ahead of the launch of its new Black Coral LMG system. The group ‘anticipates that Black Coral will enhance player engagement and accelerate the replacement of existing LMG terminals and systems in operation, hence driving future revenue growth of the group in this segment’.
