Paradise Entertainment posts losses of US$14.3m for H1
The Macau gaming company saw a 20.1 per cent decrease in revenue in a period that saw it drop its Casino Waldo contract.
Macau.- Casino operator Paradise Entertainment Limited has posted a 70.1 per cent decrease in revenue for the first half of 2020, compared to the same period in 2019.
Revenues totalled HK$177.3 million (US$22.8 million), with losses amounting to HK$111.3 million (US$14.3 million).
The company said: “2020 interim results were significantly affected by the outbreak of Covid-19 since early this year and the related measures/policies to contain the spread of the coronavirus.”
All casinos in Macau suspended operations for at least 15 days from February 5. Casino Kam Pek Paradise reopened on February 20 and Casino Waldo reopened on February 24.
The company decided to discontinue the provision of casino management services at Casino Waldo from March 1.
The firm said: “Having considered a number of factors thoroughly, in particular the capital injection requirement on additional monitoring system and equipment at Casino Waldo for compliance with new regulatory requirements, which would not be recovered before end of the existing gaming concession according to our analysis, the relative high operating costs of the casino, and also the adverse impact from the outbreak of coronavirus disease, the group ultimately decided not to request renewal or extension of the service contract.”
The company’s electronic gaming equipment and systems unit, meanwhile, saw a 87.7 per cent decrease in revenue year-on-year to HK$11.4 million (US$1.47 million) for H1.
The one high point for Paradise was the performance of its LMG machines during the pandemic. It said their suitability for adapting to Covid-19 measures would influence design and development in the future.
It said: “We observed that their distinctive features were capable to fit well and in harmony with the specific measures imposed by DICJ to maintain a safe distance between gaming tables, and between gaming machines.”
“This has innovated the group with encouragement when designing and developing gaming products, the objectives should not only offer gaming satisfaction to patrons solely, but also highlight the importance of facilitating and prompting public health awareness on casino management strategy as a whole.”
