Supplier News

China – Paradise feeling the pinch as Macau economy tightens

By Phil - 3 September 2015

Macau-based gaming equipment supplier Paradise Entertainment reported a loss of HK$11.8m ($1.5m) in the first half of 2015, compared to a profit of HK$50.46m in the first half of 2014.

The company blamed ‘the diminishing economic growth rate recorded in China and the widening anti-corruption campaign initiated by the central government of China.’

First half revenue dropped by 6.4 per cent to HK$571m.

The group added: “In addition, the group’s revenue was also undermined by a surge of overall operating expenses, particular the ever increasing labour costs.”

Paradise Chairman Jay Chun remained optimistic on the long-term prospects for the company as its EBITDA remained ‘healthier’ than its rivals. The company’s adjusted EBITDA actually fell by 66.3 per cent to HK$49.8m.

he added that Macau would remain a booming market for the sale of LT Game terminals. In May, Paradise sold 42 live multi-game (LMG) terminals to Galaxy Macau Phase II, as well as an additional 50 to Phase 1. Sales and revenue sharing of Live Multi Game Terminals contributed 20 percent of the total revenue.
In June, it deployed 172 slots to Waldo Casino, ‘broadening the offering of the casino by providing a variety of choices to players, which brought about more revenue for the Group.’

It is also looking at opportunities in California, Pennsylvania, and New York City.