CASINO

Paradise Entertainment Q3 earnings down 57% year on year

TAGs: Macau, Paradise Entertainment

Paradise Entertainment Limited reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of HKD19.7 million ($2.5 million) in the third quarter, 57.3% lower than the same period last year.

Paradise Entertainment Q3 earnings down 57% year on yearIn a filing with the Hong Kong Stock Exchange, the company said that the earnings from casinos under its management amounted to HKD50.3 million ($6.42 million), down 31.1% from the same period last year. It posted a loss of HKD23.4 million ($3 million) for its electronic gaming equipment and systems operations, larger than the HKD17.9 million ($2.3 million) loss during the third quarter of the previous year.

For the first nine months of 2018, however, adjusted EBITDA was up 68.9%, to HKD79.4 million ($10.1 million). Casinos managed by the group had an adjusted EBITDA of HKD128.8 million ($16.4 million), 26.8% higher year on year. The loss for electronic gaming from January to September was HKD27.8 million ($3.6 million), slightly less than the loss during the same period in 2017, of HKD28.8 million ($3.7 million).

Revenue for the third quarter was HKD272.3 million ($34.8 million), 1.9% higher than the corresponding period in 2017. Revenue from casinos was HKD270.4 million ($34.5 million), up 3.1% year on year. For electronic gaming, only HKD1.9 million ($243,000) was reported, but Paradise Entertainment said this did not include revenue derived from LMG Terminals deployed in the casinos it manages, which brought in HKD36.9 million ($4.7 million) for the third quarter, and HKD112 million ($14.3 million) for the first three quarters.

Total gross gaming revenue (GGR) from the Casino Kam Pek Paradise in Macau was HKD356.5 million ($45.5 million) for the quarter, 6.1% higher year on year. For the first three quarters of 2018, GGR was HKD1.04 billion ($133.3 million), 13% higher than January to September of 2017.

For the Casino Waldo, also in Macau, total GGR was HKD133.7 million ($17.1 million), 3.5% down from the previous year’s third quarter. For the first nine months, GGR amounted to HKD370.7 million ($47.3 million), 4.3% lower year on year.

The Group said that as of September 30, it held bank balances and cash of HKD251.9 million ($32.2 million), and chips on hand of HKD30.6 million ($3.9 million).

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