Macau’s Paradise Entertainment Ltd, a leading supplier of Live Multi-Game Terminals and manager of Casino Kam Pek Paradise on the Macau peninsula, has revealed it is in the process of establishing an office in the Philippines as it looks to expand its business.
The company released its 1H24 financial results on Wednesday, reporting a profit of HK$119.4 million (US$15.3 million) and reversing a HK$3.0 million (US$385,000) loss from a year earlier due to improved sales across both key business segments.
But it also revealed regional expansion plans with a specific focus on the Philippines, stating, “The Group is actively expanding its business of supplying gaming equipment and systems to other Asian markets, particularly the Philippines as it holds the title of the largest electronic gaming machine market in Asia, offering great flexibility with numerous casinos and a variety of gaming types. This presents 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 in the process of setting up a new office and showroom in the Philippines. This physical presence will enable the Group to establish a stronger foothold, enhance its customer relationships, and provide direct support and after-sale services to its customers in the region.”
Paradise’s 1H24 result came on the back of 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 Casino Kam Pek Paradise 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 Casino Kam Pek Paradise climbed by 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, revenue of HK$68.2 million (US$8.7 million) included 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 upgrading services to LMG terminals and HK$1.9 million (US$243,500) from the leasing of electronic gaming equipment and systems.
Paradise said it did not derive any revenue from the sale or leasing of gaming equipment to overseas markets but revealed it has reached an agreement with the operators of some Philippines IRs for a trial of 24 slot machine units, with a collaborator to deploy 144 mini slot machines in the Philippines, and with certain distributors to promote and distribute the Group’s gaming equipment and systems in the Philippines.
Group-wide Adjusted EBITDA in 1H24 was HK$147.7 million (US$18.9 million), up from HK$31.0 million (US$4.0 million) for the six months ended 30 June 2023.
“Looking ahead, the Group recognizes that the global economic development remains vulnerable and unpredictable towards factors such as geopolitical tensions, monetary policies and high interest rates,” the company said.
“In view of these uncertainties and challenges, the Group is committed to an adaptive but prudent approach. Recognizing the immense potential in the growing markets across 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.”
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