Paradise Entertainment Limited, a provider of gaming machines and casino management services, posted an increase in revenue and profits for the year ended 31 December 2016, mainly due to the sales of electronic gaming systems to the Macau market.
According to the annual results of the company with the Hong Kong Stock Exchange, gross profits hit HK$453.75 million (US$58.38 million), up from HK$412.85 million in 2015, while revenue hit HK$ 1.16 billion, representing a 6.5 per cent increase from the HK$1.09 billion generated a year earlier.
The company noted that the rise was mainly attributable to the ‘strong demand for electronic gaming equipment and systems in the Macau market.’
Following the breakdown of the contribution of revenue by segment, the sale of electronic gaming equipment and systems – mainly Live Multi Game (LMG) terminals – posted the highest increase, hitting HK$185.73 million from the HK$53.15 generated in 2015.
Revenue from leasing of electronic gaming equipment and systems was also up, hitting HK$151.22 against HK$147.86 million a year earlier, while the provision of casino management services was down 7.3 per cent to HK$826.39 million from HK$891.06 million in 2015.
Focused on mass market, the company noted that ‘the decrease in revenue from the casino service segment in 2016 was mainly due to the lower same-day visitations to Macro and macro headwind in China.’
Overall, revenue generated by the provision of casino management service represented 71 per cent of Paradise’s total revenue, down 10.6 per cent from a year earlier.
Macau segment
By geographical area, Macau remained the company’s main market, with income generated by sales and provisions of service to local casinos reaching a total of HK$1.14 billion for the whole year of 2016, slightly up from 2015, when Paradise had collected HK$1.08 billion in revenue.
The company reported that its ‘revenue and earnings showed gradual improvement in tandem with the Macau gaming market.’
The group’s revenue from the provision of casino management services for the whole year of 2016 consisted of service income received from Casino Kam Pek Paradise and Casino Waldo – the company’s two major casino operations – as well as Casino Macau Jockey Club for mass gaming tables, LMG terminals and slot machines.
Paradise reported it deployed a total of 991 LMG terminals to six casinos in Macau (893) and the overseas market (98) for the whole year of 2016, ‘a record high of LMG terminal deployment due to the strong demand from the Macau flagship casinos opening,’ according to the company.
The six casinos which acquired LMG terminals from Paradise are Wynn Palace,
The Parisian Macau, Galaxy Macau, Casino Diamond at Holiday Inn, Casino Babylon at the Macau Fisherman’s Wharf, and Casino StarWorld.
Paradise was founded on January 1, 1997 and is headquartered in Hong Kong. In addition to casino management services and the provision of electronic gaming machines, the company is also involved in the market and software development businesses through its subsidiaries.
