Paradise Entertainment reports half-year loss as a result of IGT patent deal

Monday 29th of August 2016

Gaming services provider Paradise Entertainment Limited says it saw a vastly widened loss of HK$416.8 million ($53.7 million) for the first half of 2016, compared to a net loss of HK$23.9 million in the first half of 2015.

The losses are attributed to a one-off loss on its patents and patent applications deal with IGT, which amounted to HK$334 million, said the firm in its filing to the Hong Kong Stock Exchange.

Revenue for the first half of the year amounted to HK$519.8 million, down nine percent year-on-year from HK$571 million.

“Such decrease was attributable to the decrease in gross gaming revenue of the Group’s casino management business, mainly driven by the diminishing economic growth rate in China and the anti-corruption campaign by the Central Government of China,” said the company.

The drop in number of tourists visiting Macau also affected casino services revenue, which made up 77.5 percent of the group’s total revenue for the period.

“The Group is awaiting the Macau government to promulgate more effective supportive policies in order to revitalise the economy of Macau,” it said.

Looking ahead, the group said it remains “cautiously optimistic”, but noted that there were positive signs for the industry as “the Macau government is trying to find leeway to allow the setup of smoking rooms in casinos” instead of a full smoking ban, which “might deter certain gamers and affect casino revenues.”

Earnings & Filings Deal Loss Patent