Gaming equipment provider and casino services company Paradise Entertainment Ltd posted losses attributable to owners of HK$87.93 million (US$11.2 million) in the first half of 2022, up slightly from HK$20 million in the same period last year.
The Hong Kong-listed company operates Casino Kam Pek Paradise, a satellite casino of SJM’s gaming concession in downtown Macau Peninsula, and supplies electronic gaming equipment and systems through its subsidiary LT Game.
Paradise Entertainment’s revenue also plummeted by nearly 30% year-on-year to HK$181.1 million in the first half of 2022, according to an interim report released yesterday (Thursday).
“[T]The global economy continues to be impacted by the lingering COVID-19 pandemic,” Paradise Entertainment chairman and managing director Jay Chun said in a statement accompanying the report. “The highly infectious variant has caused significant disruption for varying periods in Macau, where we primarily operate. The Group’s business in providing casino management services at Paradise and Casino Kam Pek Paradise has been severely impacted as a supplier of electronic gaming equipment and systems.”
He noted a 44-day outbreak in Macau that began on June 18, and when all casinos were closed, the government imposed a 12-day partial lockdown in July to control the situation. I was forced to impose.
Casino Kampek Paradise’s Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for the first half of 2022 reported a loss of HK$23.3 million, compared with a profit of HK$39.1 million in the same period last year. the report said.
“The turnaround from surplus to loss was primarily due to a reduction in GGR. [gross gaming revenue] generated by Casino Kampek Paradise when compared to those generated during the six months ended June 30, 2021,” the company said. January-June 2022 term.
The company also signed a HK$60 million loan agreement with Chung in the first half of the year at an interest rate of 10%, which doubled to HK$120 million after the reporting period. It added that the move was to “enhance liquidity” for Paradise Entertainment, according to reports.
Looking ahead, Chun said in a statement: And new gaming laws are set to be enacted in Macau in the next few years. ”
Despite a three-year grace period, the new gaming law, which was approved and went into effect in late June, bans revenue-sharing business models at satellite casinos, which are seen as an important source of revenue for casino services companies. increase.
Paradise Entertainment also mentioned cooperation with SJM Holdings. His six current gaming concessions and sub-concessions in Macau are set to expire by the end of this year, and the Macau government recently launched an open tender for up to six gaming licenses to start in 2023. .
“The Group has confirmed its commitment to SJM Resorts to continue to provide efficient casino management services to Casino Kampek Paradise until December 31, 2022,” Chun said. SJM Holdings holds gaming rights in local casinos through SJM Resorts.
“The Group will keep an eye on developments in Macau’s new gaming law in response to regulatory changes and identify opportunities for cooperation to contribute to Macau’s gaming industry within the scope of the new gaming law,” he added.
Regarding the electronic gaming device segment, the chairman added: [Live Multi Game System] Machines and other ETGs [electronic table games] The machine has to keep growing. ”
