Paradise Entertainment bullish on business outlook

By
Stephanie Lai

Gaming equipment maker Paradise Entertainment Ltd.
chairman Jay Chun said that while he has a cautious outlook on the full-year financial expectations amid the current gaming slump in Macau, the company was still bullish on the long-term prospects for its gaming machine sales.
Mr. Chun made the remarks in an interview with Asia Fund Space, a networking site for pan-Asia listed companies and professional investors.
“For FY2014, amortisation costs related to our gaming machine segment will come into play for the 12-month period but we are bullish on the long-term prospects for our new gaming machine additions,” Mr. Chun was quoted as saying.
Mr. Chun’s company issued a negative profit alert last month saying that they expected a loss for the six months ended June 30 due to the reduced gross gaming revenue of the casino management business and higher operating expenses, particularly for labour.
Apart from manufacturing and selling electronic gaming machines under the brand of LT Game, Paradise Entertainment also provides sales services, marketing, promotion, player development and referral for Waldo Casino and Casino Macau Jockey Club.
Talking to Asia Fund Space, Mr. Chun said he expected Paradise Entertainment’s revenue to decline by low double-digits in the first half of this year.
But the company remained upbeat as its EBITDA numbers have grown at a “much healthier pace” than its competitors, Mr. Chun remarked.
The gaming equipment maker’s boss was also confident about gaming machine sales in Macau for the next few years. In late May, his company deployed 42 live multi-game (LMG) terminals at the newly opened Galaxy Macau Phase II, as well as an additional 50 such terminals in the Phase 1 property of Galaxy Macau, bringing total new deployment in both casinos to 92 terminals.
As for the top overseas market in the US, Paradise Entertainment was also considering opportunities for gaming resorts outside of Las Vegas, including California, Pennsylvania, and some near to New York City.