Paradise Entertainment expects to report a HK$82.6m loss for the first six months of 2026, reversing from a HK$177.8m profit a year earlier as the company continues to adjust to significant changes in its business model.
According to a profit warning issued by the Hong Kong-listed gaming technology company, the weaker result was primarily driven by the end of its casino management services business in Macau following the expiration and non-renewal of the relevant operating agreement in December 2025.
The closure of that business meant the group recorded no revenue from casino management services during the reporting period, compared with HK$382.6m generated from the segment in the first half of 2025.
The company also reported a sharp decline in its gaming equipment business. Revenue from the sale and leasing of electronic gaming equipment and systems fell by HK$93.1m, or 74.2%, year over year, largely due to lower sales of its live multi-game (LMG) terminals and systems in Macau.
Paradise Entertainment believes some customers delayed purchases while waiting for the launch of its next-generation LMG platform, Black Coral, which is scheduled to enter the market in the second half of 2026 or early 2027.
The company emphasized that the figures are based on a preliminary review of unaudited management accounts and remain subject to audit and possible adjustments before the release of its interim results, which are expected by the end of August.
Despite the near-term earnings pressure, Paradise Entertainment has continued expanding its international presence. In June, its Singapore subsidiary received Approved Manufacturer status from Singapore's Gambling Regulatory Authority, allowing the company to manufacture gaming equipment under one of Asia's most tightly regulated gaming frameworks.
The group also strengthened its corporate governance earlier this year with the appointment of Eric Ho King Fung as an independent Non-Executive Director and audit committee member as it continues to focus on long-term technology development and international growth.
Paradise Entertainment plans to launch its new Black Coral live multi-game platform in the second half of 2026 or early 2027
