Last year, electronic gaming equipment supplier Paradise Entertainment reported a loss of $4.4 million for the first half of the year. Things look like they could be turning around this year, though, as the company announced that it expects its revenue to be on the plus side for the first six months of 2018. The gains reportedly come from a 10% increase in revenue from its casino management services and an explosion in equipment sales that has reached 160% over last year.
For its first-quarter report this year, Hong Kong-listed Paradise indicated that its revenue had increased year-on-year by 31.1% to reach $39.28 million. Sales from gaming equipment increased by 170.2% over the same period last year, bringing in $6.47 million. This was a substantial increase over the $2.39 million for the first quarter last year.
The increase in sales propelled the company into the purchase of a warehouse facility in Macau. The purchase is said to be worth around $16 million, with the total amount paid by October 15 of this year.
Through its LT Game subsidiary, Paradise supplies electronic gaming equipment to casinos in Macau, as well as in other countries. It also operates casinos in satellite properties in Macau through licenses held by other operators. It operates the Kam Pek Paradise Casino under the license of SJM Holdings and the Waldo Casino through a partnership with Galaxy Entertainment.
Once Macau revamps its casino licensing procedures, expected to be complete by the end of the year, Paradise will consider bidding on a new license if the company likes what it sees, and if additional licenses are made available. Currently, there are only six licenses offered in the city, but some industry analysts have suggested that a seventh, or even an eighth, license could be added.
That is still several years out, however, as most licenses won’t expire until 2022. Two licenses, those of MGM and SJM, will expire in 2020, but many expect the companies to receive extensions to put all six licenses in line for bidding in 2020.
Paradise is also considering an expansion of casino operations outside of Macau. Bob Shen, the company’s investor relations manager, has indicated that the company would consider a joint venture opportunity or even one that saw Paradise only provide equipment and gaming machines, depending on which was more advantageous for the firm.
