Casino management services and electronic gaming equipment company Paradise Entertainment, reported significant improvements in Adjusted EBITDA across its key segments last year, and aimed to reach out to other markets in Southeast Asia.
The group headed by Jay Chun has reported a total revenue of HK$634.3 million ($81 million) in 2023, marking a notable increase of 113 percent compared to 2022.
This substantial growth in revenue was attributed by Paradise to several key factors, namelly a significant surge in revenue from the provision of casino management services in Macau, driven by increased patronage at Casino Kam Pek Paradise, a casino under the company’s management.
The easing of travel restrictions by the Macau government, coupled with the resumption of cross-border travel between Mainland China, Hong Kong, and Macau, contributed to the rise in arrivals to Macau, further boosting the casino’s revenue.
Additionally, revenue from the sale of electronic gaming equipment and systems in Macau saw a notable increase.
Despite a slight decline in revenue from overseas markets, the company experienced heightened demand for electronic gaming equipment locally.
Moreover, Paradise ventured into a new business segment, offering renewable energy solutions in mainland China, which contributed HK$12.4 million ($1.5 million) to the reported revenue for 2023.
This diversification strategy was said to have helped add another revenue stream to the company’s portfolio.
Paradise stated in the financial report, to be actively pursuing opportunities beyond the Macau gaming market, particularly in overseas markets, to expand its electronic gaming equipment and systems business.
‘Identified regions with substantial potential include Southeast Asian markets such as the Philippines, Vietnam, and Cambodia, as well as North American markets. Notably, the Philippines stands out as the largest electronic gaming machine market in Asia, offering a diverse range of gaming options across numerous casinos,’ the group says in the report.
‘With its international outlook and alignment with global gaming standards, the Philippines market presents an attractive opportunity for the Group. Moreover, the Group’s products developed for the Philippines market can be easily adapted for promotion in other global gaming markets with minimal modifications.’
Paradise also witnessed significant improvements in Adjusted EBITDA across its key segments during 2023.
Casino Kam Pek Paradise reported a turnaround of HK$162.8 million ($20.8 million) in profits compared to a loss of HK$38 million ($4.8 million) in 2022.
Similarly, the electronic gaming equipment and systems segment also saw a notable improvement, reporting a reduced loss of HK$14.8 million ($1.8 million) compared to HK$53.6 million ($6.8 million) in 2022.
This turnaround was primarily driven by the shift in Adjusted EBITDA from a loss of HK$18.4 million ($2.3 million) to a profit of HK$11.1 million ($1.4 million) in revenue from the sale and provision of upgrading services to LMG terminals in Macau.
Additionally, effective cost-saving strategies implemented by the Group, such as relocating certain work activities to offices in Macau and Mainland China, contributed to this positive outcome.
