Paradise Entertainment revenue drops 67.1% as H1 loss reaches HK$82.6m

Paradise Entertainment reported a first-half loss as the company continued transitioning away from its former Macau casino management business and focused on gaming equipment and consulting services.

For the six months ended June 30, 2026, revenue from continuing operations declined 67.1% year-over-year to HK$41.3m, compared with HK$125.4m in the prior-year period. The company posted a loss from continuing operations of HK$82.6m, reversing a HK$29m profit a year earlier.

The decline was primarily driven by lower sales of electronic gaming equipment in Macau, where revenue from gaming equipment sales and leasing fell 74.2% to HK$32.3m. Macau revenue alone dropped to HK$30.3m from HK$125m, largely because customers delayed purchases ahead of the anticipated launch of the company's next-generation Live Multi Game platform.

Despite the slowdown in equipment sales, Paradise generated HK$9m from a new professional consulting and other services business established after it ceased providing casino management services in December 2025. The company entered into a partnership with a Macau gaming concessionaire to provide consulting services at one of its casinos, partially offsetting the decline in its legacy operations.

The company also increased investment in research and development, with spending rising to HK$31.3m from HK$22.1m a year earlier, as it continued developing new gaming products and software.

Looking ahead, Paradise said it expects to launch its Black Coral Live Multi Game platform in the second half of 2026 or early 2027, subject to regulatory approvals. The new system features upgraded player interfaces, real-time data analytics and enhanced back-office management tools designed to improve gaming floor productivity.

The company also plans to expand its electronic gaming equipment business beyond Macau into markets including Vietnam, the Philippines, Singapore, Malaysia, Sri Lanka and North America while continuing to diversify its portfolio of gaming content.