Paradise Entertainment has issued a profit warning, advising shareholders that its 2025 earnings are expected to drop sharply. The decline is attributed to weaker performance across major business segments and the early termination of casino operations in Macau.
Based on preliminary unaudited figures, the group anticipates reporting profit of HK$139.4m for the year ended December 31 2025. This represents a decrease of HK$242.5m, or 63.5%, compared with HK$381.9m recorded a year earlier.
The company said the downturn was driven primarily by a reduction in casino management service revenue in Macau, which decreased HK$85.2m or 11.9% year on year.
Revenue from the sale and leasing of electronic gaming equipment and systems also dropped significantly, falling HK$165.5m or 45.3% from 2024 levels.
The closure of the casino under management led to several one-off expenses, including HK$42.1m in compensation and reimbursements for staff employed by SJM Resorts who worked under Paradise’s management. Additionally, the early shutdown resulted in the loss of nearly one month of anticipated income for 2025.
The group also attributed weaker equipment sales to customers delaying purchases of its Live Multi Game (LMG) terminals in anticipation of “Black Coral,” its upcoming LMG system planned for launch in 2026. The new system will feature analytics tools, enhanced visualisation and real-time gameplay data, aimed at improving player engagement, though no revenue from this product has yet been recognised.
Paradise noted that its final audited results may differ from its preliminary assessment and are expected to be published by the end of March 2026. Investors were advised to exercise caution when trading the company’s securities.
Casino Kam Pek Paradise ceased operations on December 2 2025 after SJM Resorts decided not to renew its management agreement with Paradise
