Paradise Entertainment expects to swing to a loss in the first half of 2026 after revenue from the sale and leasing of electronic gaming equipment and systems plunged 74.2 percent.
The Hong Kong-listed gaming technology supplier expects to record a loss of HK$82.6 million ($10.6 million), compared with a profit of HK$177.8 million ($22.8 million) in the same period last year, according to a profit warning filed on Friday.
Revenue from electronic gaming equipment and systems fell by HK$93.1 million ($11.9 million), with the company pointing particularly to lower sales of live multi game (LMG) terminals and systems in Macau.
Paradise Entertainment attributed the decline partly to the planned introduction of Black Coral, its next-generation LMG platform, which is scheduled to enter the market in the second half of 2026 or early 2027.
The company said customers ‘might have opted to postpone their purchases in anticipation of the new version of LMG,’ reducing sales of its existing platform during the reporting period.
The expected loss was also affected by the end of Paradise Entertainment’s casino management services business in Macau. The relevant service agreement expired and was not renewed, effective December 2nd, 2025.
As a result, the group did not recognize any revenue from the provision of casino management services in Macau during the first half of 2026.
The operation generated revenue of HK$382.6 million ($49.1 million) in the corresponding period of 2025.
Paradise Entertainment’s previous-year profit also included HK$148.8 million ($19.1 million) from the discontinued casino management operation. Profit from continuing operations stood at HK$29 million ($3.7 million).
The company is still finalizing its unaudited consolidated financial results and expects to publish its interim results by the end of August.
