Paradise Ent 1H loss at US$10.5mln as gaming equipment revenue falls

Hong Kong-listed casino equipment maker Paradise Entertainment Ltd reported a loss of HKD82.6 million (US$10.5 million) for the first half of 2026, compared with a profit of HKD177.8 million in the prior-year period. The company’s loss attributable to shareholders was HKD71.8 million, versus a HKD172.5-million profit a year earlier. The group declared no interim dividend for the latest reporting period. Paradise Entertainment’s revenue from continuing operations fell 67.1 percent year-on-year, to HKD41.3 million. The group recorded adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) that was negative to the tune of HKD74.4 million, compared with positive adjusted EBITDA of HKD41.3 million in the first half of 2025. The company had previously warned that it expected to record a loss of approximately HKD85 million for the six months to June 30. Paradise Entertainment is the parent of Macau-based electronic casino games specialist LT Game Ltd. The latter is known for its long-standing dominance in the live multi-game (LMG) category of electronic-table products in the Macau market. Revenue from the sale and leasing of electronic gaming equipment and systems declined by 74.2 percent year-on-year, to HKD32.3 million. The segment recorded an adjusted EBITDA loss of HKD54.0 million, versus positive adjusted EBITDA of HKD48.8 million a year earlier. Paradise Entertainment said the turnaround in the segment was mainly due to lower revenue from sales of the group’s LMG terminals in Macau, as well as higher research and development and other costs. Revenue from sales and leasing of gaming equipment and systems in Macau fell 75.8 percent year-on-year, to HKD30.3 million. Gaming-machine sales generated HKD3.1 million, down from HKD77.0 million in the first half of 2025. The company said customers might have postponed purchases ahead of the introduction of its next-generation LMG platform, “Black Coral”. The product is expected to obtain regulatory approval for commercial launch in the second half of this year, “paving the way for rapid layout expansions and immediate system retrofits across major gaming facilities,” the company stated. Paradise Entertainment ceased providing casino management services at Casino Kam Pek Paradise in Macau on December 2 last year. The discontinued operation had generated HKD148.8 million in profit in the first half of 2025, on revenue of HKD382.6 million. Since December, the group has instead been providing professional advisory and other services to a casino operated by a Macau gaming concessionaire. The business generated HKD9.0 million in first-half revenue, but an adjusted EBITDA loss of HKD6.1 million.