Paradise Entertainment has warned investors that it expects to report a ‘material reduction in the reported revenue and profit attributable to shareholders’ following the non-renewal of its casino management contract for Casino Kam Pek Paradise in Macau, which expires on December 31st, 2025.
The Hong Kong-listed gaming equipment supplier and satellite casino operator disclosed that it received notification on June 9th that its provision of casino management services to Casino Kam Pek Paradise would not be renewed or extended upon expiry of the service agreement with SJM Resorts. The company has managed the property since 2007, spanning nearly 18 years.
According to AGB’s calculations, revenue from the satellite casino operation reached HK$382.6 million ($49.1 million) in the first half of 2025, accounting for 75.3 percent of total revenue of HK$507.9 million ($65.2 million). This suggests the company could lose roughly three-quarters of its revenue once the satellite casino contract ends.
In an earlier interview with AGB, company chairman and managing director Jay Chun said Paradise Entertainment would pivot its business strategy to focus on gaming equipment operations.
Strong interim results despite looming contract expiry
Despite the impending contract termination, Paradise Entertainment reported solid interim results for the first half of 2025. Revenue rose 19.4 percent year-on-year to HK$507.9 million ($65.2 million), compared with HK$425.3 million ($54.6 million) in the same period of 2024.
Profit attributable to shareholders surged 48.5 percent to HK$172.5 million ($22.1 million).
The revenue boost was mainly driven by higher income from casino management services and strong sales of electronic gaming equipment and systems in Macau. Casino management services revenue climbed to HK$382.6 million ($49.1 million) from HK$356.5 million ($45.7 million) a year earlier. Meanwhile, gaming systems revenue nearly doubled to HK$125.4 million ($16.1 million) from HK$68.1 million ($8.7 million).
The company’s gaming systems segment performed particularly well, with revenue from sales and leasing of electronic gaming equipment in Macau surging 83.3 percent to HK$125 million ($16 million). Growth was largely driven by increased demand for Live Multi Game terminals and related products.
Gross profit for the period reached HK$328.6 million ($42.2 million), up 27.3 percent from HK$258.2 million ($33.2 million) in the first half of 2024. Adjusted EBITDA rose 43.4 percent to HK$211.8 million ($27.2 million), compared with HK$147.7 million ($19.0 million) a year earlier.
Casino Kam Pek Paradise continued to deliver steady performance in the first half of 2025, generating gross gaming revenue of HK$698.9 million ($89.8 million), up 7.2 percent from HK$651.7 million ($83.7 million) in the same period of 2024. The casino operates 30 gaming tables along with 100 slot machines and electronic table game machines under Paradise Entertainment’s management.
Dividend payout raised
Paradise Entertainment declared an interim dividend of HK$0.075 per share for the six months ended June 30th, 2025, compared with HK$0.05 a year earlier. The dividend, totaling HK$78.9 million ($10.1 million), is expected to be payable on October 15th to shareholders on record as of September 19th.
The company also distributed a final dividend of HK$0.11 per share for 2024, amounting to HK$115.7 million ($14.9 million), which was paid in June 2025.
