Hong Kong-listed gaming device maker Paradise Entertainment Ltd posted 6.5 percent revenue growth in 2016, thanks in part to the higher sales of its live multi-game (LMG) terminals.
Paradise Ent. announced that its full-year revenue was approximately HKD1.16 billion (US$149.7 million) due to strong demand for electronic gaming equipment and systems in the Macau market. The revenue figure was higher in 2016 compared to the HKD1.1 billion ($141.55 million) it registered in 2015.
The company’s reported adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) for 2016 HKD97.5 million ($12.55 million). This represents a year-on-year of increase of 40.1 percent.
Paradise Ent., which develops, supplies and sells electronic gaming systems under the LT Game brand, more than tripled its sale of its LMG terminals in 2016 compared to the previous year. Paradise said 236 LMG terminals sold in 2015 versus 991 units in 2016.
The group sold an aggregate of 893 LMG terminals to six casinos in Macau – namely Wynn Palace, Parisian Macau, Galaxy Macau, Casino Diamond at Holiday Inn, Casino Babylon at the Macau Fisherman’s Wharf, and StarWorld. Galaxy Entertainment also shipped a total of 98 LMG terminals to four overseas clients.
Paradise Entertainment says it has seen positive growth in the U.S. from its strategic accord with IGT, which it says will help it expand in overseas markets.
“We have seen encouraging momentum from IGT distribution in the United States market, especially in Nevada, Pennsylvania and California State, during the year ended Dec. 31, 2016. Undoubtedly, this strategic agreement with IGT will not only expedite our penetration into the overseas markets, but also increase the sustainable revenue base of the group,” it said in a regulatory filing on Wednesday.
But on the flip side, the Macau-based supplier’s net loss widened to HK$355.1 million ($45.7 million) for the year ended Dec. 31, 2016, compared to a loss of HK$149 million ($19.17 million) in 2015.
“The loss for the year ended Dec.31, 2016 was mainly due to the loss arising from assignment of intangible assets of HK$334.8 million in relation to the assignment and license of patent and associated technology to IGT in April 2016,” Paradise said.
In a statement, Paradise Entertainment’s chairman and managing director, Jay Chun, stated: “Looking ahead, the group remains cautiously optimistic and will continue to expand our existing businesses.”