Paradise Entertainment reports 40.5% revenue spike in FY 2021

Paradise attributed the increase to a rise in revenue from casino management services in Macau, as well as sales of electronic gaming equipment in Macau and overseas.

Gross gaming revenue (GGR) generated by the Paradise-managed Casino Kem Pek Paradise resort came to HK$761.7m, a rise of 36.8% from 2020.

Although it is managed by Paradise, the casino is owned by SJM Holdings and operates under its licence, meaning that all of its revenue is not attributed to Paradise.

The casino’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were HK$42.3m, up by HK$81.8m from a loss of HK$60.5m year-on-year.

Revenue from electronic gaming equipment and systems rose 209.9% to HK$78.4m. This revenue was derived mainly from the sale of 116 live multi game terminals (LMG), upgrading services provided to 1,607 LMG terminals in Macau and the sale of 99 slot machines overseas.

Adjusted EBITDA from that segment was HK$21.2m a significant rise compared to the loss of HK$71.6m recorded in 2020.

“The Covid-19 pandemic has taken an unprecedented heavy toll on most of the world’s economies, particularly in tourist-related sectors such as the entertainment and gaming industries,” said Mr. Jay Chun, managing director of Paradise Entertainment. “The several waves of Covid-19 with evolution of different variants continued to place 2021 as a tough and challenging year.”

Paradise also invested HK$52.6m into research and development throughout the year, to increase demand for its services and heighten market presence.

Looking to the year ahead, Chun said: “We expect to continue facing strong and unsteady headwinds, especially with the fluctuations of the number of infected cases due to the Covid-19 pandemic with further uncertainties as to whether other unknown new virus variants may arise thereafter.”

“We will continue to assess the impact of the pandemic on our operation and financial performance and closely monitor our exposure to the risks and uncertainties in connection with the pandemic and will take appropriate measures as necessary to minimise the risks.”