Paradise Entertainment has posted a strong interim result for the first half of 2025, but warned of a decline in revenue and profit once its management contract for the SJM satellite casino Kam Pek Paradise expires in December.
“The board expects to report a material reduction in the reported revenue and profit attributable to the shareholders after the expiry of the service agreement between the Group and SJM Resorts,” it said in a Wednesday filing.
The Hong Kong-listed firm reported profit attributable to shareholders of HK$172.5 million for the year to 30 June, a 48.5 percent increase compared with the same period in 2024. First half revenue rose 19.4 percent year-on-year to HK$507.9 million.
Adjusted earnings before interest, taxes, depreciation, and amortisation climbed 43.4 percent to HK$211.8 million, with HK$170.5 million generated from casino management services for Kam Pek Paradise and HK$48.8 million from the company’s LT Game electronic equipment division.
Paradise Entertainment declared an interim dividend of HK$0.075 per share, up from HK$0.050 a year earlier, representing a total payout of HK$78.9 million. Payment is scheduled for 15 October.
[See more: Where will low-stakes gamblers go when Macao’s satellite casinos close?]
Revenue from casino operations rose 7.3 percent year-on-year to HK$382.6 million, while revenue from the sale and leasing of electronic gaming equipment surged 83.7 percent to HK$125.3 million. Demand for LT Game’s live multi-game terminals was cited as a key driver.
The company opened a 1,860-square-metre gaming equipment production line in northern Macao earlier this year, intended to strengthen its supply capabilities. It is the only facility of its kind in the city.
In its filing, Paradise Entertainment affirmed commitment to pursuing new opportunities in Macao and across international markets like the Philippines, Sri Lanka and the US. “Leveraging its proven track record in casino management and electronic gaming systems, [Paradise Entertainment] aims to enhance strategic partnerships and expand its footprint in jurisdictions with promising growth potential,” it stated.
Paradise Entertainment also noted that it would adopt a “flexible yet prudent approach to business development and allocation of resources in high-growth sectors” in light of ongoing ongoing volatility and unpredictability in global markets.
“[Paradise Entertainment]’s strategic expansion reflects the Group’s long-term vision to diversify revenue streams, strengthen its international footprint, and capitalise on evolving gaming market dynamics.”
