Paradise Entertainment Limited, which operates slot and Live Multi Game machines in 18 casinos in Macau as well as in their overseas operations, posted a loss of HK$149 million (US$19.21 million) for 2015, despite expanding their LMG services throughout the year (see table 1) and adding machine sales to their management operations, as filed with the Hong Kong Stock Exchange. The group posted a revenue loss of 8.4 per cent for the year which planed at HK$1.09 billion, compared to HK$1.99 billion the previous year. Aside from the decline in gross gaming revenue for the group’s casino management services, Paradise cited increasing labour costs – the group currently employs 500 individuals – the economic slowdown and the ‘unexpected depreciation of renminbi’ in the past few months. Looking outwards The group celebrated its first outright sale of their LMG terminals in the Palazzo, with 24 machines sold, marking an ‘important milestone for the Group in its path to secure a foothold in the world’s largest gaming machines market,’ said the report. The group stated that it will see more sales in overseas, and believes LMG terminals will soon gain acceptance throughout the U.S. gaming industry. The group has been plagued by a loss as they wait for approval from the Nevada Gaming Board to sell their LMG terminals in the state. The legislation came through at the end of the year. The adjusted EBITDBA (Earnings Before Interest, Taxation, Depreciation and Amortization) for 2015 amounted to HK$48.1 million – a 76.3 per cent drop compared to the previous year’s HK$203 million. Terminal growth Of the total generated, 18.4 per cent of the revenue came from sale and revenue sharing of LMG terminals, up 5 percentage points from the previous year. Of the total revenue recorded, 81.6 per cent was generated by the provision of casino services. Paradise Entertainment Ltd. also operates the Kam Pek Casino, operated under SJM licence. The group, in their filing, said that it ‘expects the government to promulgate more supportive policies to revitalise the economy of Macau’ and praised the reversal of the transit visa policy – saying it will certainly benefit casino operators but sounded a note of trepidation on a full smoking ban deterring customers. The group is currently ‘actively seeking talent in Macau, Hong Kong and China’ to support its fast growing operations.
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