Macau's Paradise Entertainment opens office in the Philippines after returning to profitability in H1 2024 – IAG

Macau-based Paradise Entertainment Ltd, a leading provider of live multi-game terminals and operator of Kam Pek Paradise Casino on the Macau Peninsula, has announced that the company is in the process of opening an office in the Philippines to expand its operations.

The company released its financial results for the first half of 2024 on Wednesday, reporting a profit of HK$119.4 million (US$15.3 million), offsetting a loss of HK$3.0 million (US$385,000) from the previous year due to improved sales in both key business segments.

But regional expansion plans were also announced, with a particular focus on the Philippines: “The Group is actively expanding its gaming equipment and systems supply business to other Asian markets, particularly the Philippines, as it holds the title of the largest electronic gaming machine market in Asia and offers great flexibility with numerous casinos and a variety of game types. This represents a significant opportunity for the Group to leverage its expertise and innovative product offerings to cater to the diverse gaming preferences of the Philippine market.

“To support this strategic expansion, the Group is currently setting up a new office and showroom in the Philippines. This physical presence will enable the Group to gain a stronger foothold, enhance its customer relationships and provide direct support and after-sales service to its customers in the region.”

Paradise's H1 2024 results resulted from a 72.4% year-on-year increase in reported revenue to HK$425.3 million (US$54.5 million), including HK$356.5 million (US$45.7 million) from the Kam Pek Paradise casino and HK$68.2 million (US$8.7 million) from the sale of electronic gaming equipment and systems – the latter under the LT Game brand.

GGR at Kam Pek Paradise Casino increased 48.3% year-on-year to HK$651.7 million (US$83.5 million), of which Live Multi-Game Terminals contributed HK$385.6 million (US$49.4 million).

In the Gaming Equipment segment, revenues amounted to HK$68.2 million (US$8.7 million), including HK$47.1 million (US$6.0 million) from the sale of 235 LMG terminals and related products, HK$19.2 million (US$2.5 million) from the provision of upgrade services for LMG terminals and HK$1.9 million (US$243,500) from the rental of electronic gaming equipment and systems.

Paradise said it does not generate any revenue from the sale or rental of gaming machines in overseas markets, but said it had entered into an agreement with operators of some IRs in the Philippines for a trial of 24 gaming machine units, an agreement with a cooperation partner to install 144 mini gaming machines in the Philippines and with certain distributors to market and distribute the group's gaming machines and systems in the Philippines.

Group-wide adjusted EBITDA was HK$147.7 million (US$18.9 million) for the first half of 2024, up from HK$31.0 million (US$4.0 million) for the six months ended 30 June 2023.

“Looking ahead, the Group recognises that global economic developments remain vulnerable and unpredictable to factors such as geopolitical tensions, monetary policy and high interest rates,” the company said.

“In the face of these uncertainties and challenges, the Group is committed to an adaptable but prudent approach. Given the immense potential of the growing markets in Asia, such as the Philippines, Vietnam and Cambodia, as well as the North American markets, the Group will take a proactive approach to explore these overseas gaming opportunities in addition to the Macau gaming market.”