Paradise Ent expects loss of US$11mln for 1H 2026 on Casino Kam Pek closure, decline in LMG sales

Hong Kong-listed gaming technology group Paradise Entertainment Ltd says it expects to record a loss of HKD82.6 million (US$10.5 million) for the first half of 2026. That was due to the closure of its satellite casino in Macau in late 2025 and a decrease in casino equipment sales, the firm said in a filing on Friday. The group had recorded a profit of HKD177.8 million for the six months ended June 30, 2025. Paradise Entertainment expects to publish its first-half 2026 results by the end of this month, it stated in its latest filing. The firm said that, based on existing information, the first-half 2026 loss was due to the “discontinued operation of the group’s provision of casino management services business in Macau” following the closure of Casino Kam Pek Paradise. As a result, Paradise Entertainment “did not recognise any revenue from the provision of casino management services business in Macau” for the first half of 2026, compared with revenue of HKD382.6 million recognised a year earlier. Casino Kam Pek Paradise was run by Paradise Entertainment until December 1 last year under the licence of gaming operator SJM Resorts Ltd. The latter is a unit of SJM Holdings Ltd. Most Macau satellites operated under the SJM group’s licence, and all but one closed last year as part of citywide regulatory changes that brought an end to the satellite-casino sector. Also contributing to Paradise Entertainment’s weaker performance in the first half of 2026 was “a decrease of HKD93.1 million or 74.2 percent in the group’s revenue from the sale and/or leasing of electronic gaming equipment and systems” during the first half of 2026, “particularly with regard to the sale of live multi game (LMG) terminals and systems in Macau,” Paradise Entertainment said. 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-dealer LMG category of electronic-table products in the Macau market. “The group’s next-generation LMG platform, Black Coral, is scheduled to launch in the market in the second half of 2026 or early 2027,” the firm stated in a filing on Friday. It added: “The company believes that customers might have opted to postpone their purchases in anticipation of the new version of LMG, leading to reduced sales of the current LMG platform during the reporting period.” Black Coral’s launch had been targeted for the first quarter, but was postponed amid refinements. Paradise Entertainment reported a profit of HKD139.4 million for full-year 2025, down 63.5 percent from the prior year. The firm said in a June announcement that a subsidiary had received approved-manufacturer status under Singapore’s Gambling Regulatory Authority (GRA). Jay Chun, chairman and managing director of Paradise Entertainment, has recently been increasing his stake in the firm because he considers its current stock valuation to be “underappreciated” relative to the company’s growth potential, as reported by GGRAsia in late June.