Paradise Entertainment sees H1 revenue fall 30%
Paradise Entertainment has reported H1 2022 total revenue of HK$181.1m (US$23.1m), representing a 30% fall year-on-year.
The company attributes this disappointing result to a fall in revenue from the provision of casino management services in Macau, as well as a dip in sales and leasing of electronic gaming equipment and systems in the region.
However, the revenue loss was partially offset by improved revenue performance in the sale and leasing of gaming equipment and systems in overseas markets.
Adjusted EBITDA for the period amounted to a HK$64.4m loss, compared to a HK$5.1m profit in the previous year.
Gross profit totalled HK$20.26m, significantly less than the previous year’s total of HK$111m. Of this loss, HK$87.9m is attributable to the company.
The company outlined the continued negative impact of Covid-19 restrictions, noting: “The outbreak of a respiratory illness caused by a novel coronavirus since early 2020 continues to have negative impacts on the business environment and the operations of the group.
“As such, the financial positions and performance of the group were affected in different aspects, including an adverse impact on the revenue and the recognition of losses from both the casino management services segment and the gaming systems segment for the six months ended 30 June 2022.”
However, despite the poor financial results, Paradise Entertainment directors maintained that they are confident that the company has “adequate resources to continue in operational existence for the foreseeable future.”
Finally, the company highlighted concerns over the existing concession contract between the Macau Government and SJM Holdings, due to expire on 31 December. If this contract is not renewed or further extended, Paradise would be in line to lose its principal source of revenue.
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