Despite facing strong headwinds in 2017, Macau-based casino equipment maker Paradise Entertainment Ltd. has managed to slash its annual losses by as much as 92 percent.
In a disclosure to the Hong Kong Stock Exchange on Monday, Paradise announced that its losses drastically dropped to HKD30.7 million (US$3.8 million) last year, compared to nearly HKD380.4 million ($47.07 million) in 2016.
The 2016 losses of Paradise included the writing down of nearly HKD334.8-million ($41.43 million) as a result of the one-off non-cash loss arising from the assignment of intangible assets concerning patents and associated technology to International Game Technology Plc (IGT).
Paradise said that it started to recognize the royalty income from the IGT deal last year, contributing some HKD2.9 million revenue to its coffers.
However, Paradise’s 2017 group revenue slid 13 percent to HKD1.01 billion ($124.98 million), from HKD1.16 billion ($143.53 million) in 2016. Chairman Jay Chun attributed the dismal financial results to the sluggish recovery of satellite casinos in Macau.
“Nevertheless, our management team has successfully executed the business strategies and the group has achieved solid results on the back of such a challenging and competitive operating environment in Macau,” Chun said in a statement.
Paradise’s electronic gaming equipment and systems segment remains a drag, with revenue plunging 87.7 percent to HKD22.8 million ($2.9 million), compared to HKD185.7 million ($22.98 million) in 2016.
Compared to the 893 terminals sold in 2016, the company only managed to move 78 of its Live Multi Game casino game terminals last year.
Revenues from its casino management division remained flat, recording a 0.6 percent gain to HKD973.9 million ($120.51 million).
The Hong Kong-listed firm currently operates casinos at Casino Kam Pek Paradise on Macau peninsula under SJM Holdings Ltd’s gaming license. It also manages casino operations at Casino Waldo in downtown Macau, under a Galaxy Entertainment Group Ltd license.
Casino Kam Pek Paradise’s annual revenue was HKD681.8 million ($84.36 million) last year, up 1.3 percent from HKD672.9 million ($83.26 million) in 2016. Meanwhile, Casino Waldo grew 6.2 percent to HKD292.1 million (US$36.14 million).
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