Macau’s Paradise Entertainment Corp., a leading supplier of live multi-game terminals and operator of the Kampeak Paradise casino on the Macau Peninsula, has revealed that it is setting up an office in the Philippines as it seeks to expand its business.
The company released its first-half 2024 results on Wednesday, reporting a profit of HK$119.4 million (US$15.3 million), reversing a loss of HK$3 million (US$385,000) a year earlier thanks to improved sales in its two main business divisions.
However, the company also revealed its regional expansion plans with a particular focus on the Philippines, stating: “The Group is actively expanding its gaming equipment and systems supply business to other Asian markets, particularly the Philippines. The Philippines holds the title of the largest electronic gaming machine market in Asia and offers great flexibility with a large number of casinos and a variety of game types. This represents a tremendous opportunity for the Group to leverage its expertise and innovative product offerings to cater to the diverse gaming preferences of the Philippine market.”
“To support this strategic expansion, the Group is preparing to establish a new office and showroom in the Philippines. This physical presence will enable the Group to gain a stronger foothold, strengthen customer relationships, and provide direct support and after-sales services to customers in the region.”
Paradise’s first-half 2024 results came on the back of reported revenue growing 72.4% year-on-year to HK$425.3 million (US$54.5 million), which included HK$356.5 million (US$45.7 million) from Casino Kampeak Paradise and HK$68.2 million (US$8.7 million) from the sale of electronic gaming equipment and systems, the latter of which is sold under the LT Games brand.
Casino Kampeak Paradise’s GGR increased 48.3% year-on-year to HK$651.7 million (US$83.5 million), of which live multi-game terminals contributed HK$385.6 million (US$49.4 million).
In the gaming equipment division, revenue of HK$68.2 million (US$8.7 million) was generated, of which HK$47.1 million (US$6.0 million) was generated from sales of 235 LMG terminals and related products, HK$19.2 million (US$2.5 million) was generated from providing upgrade services to LMG terminals, and HK$1.9 million (US$243,500) was generated from leasing of electronic gaming machines and systems.
Paradise said it does not derive revenue from the sale or leasing of gaming equipment to overseas markets, but revealed that it has agreements with several Philippine IR operators to trial the introduction of 24 slot machines, with collaborators to deploy 144 mini slot machines in the Philippines, and with certain distributors to promote and sell the group’s gaming equipment and systems in the Philippines.
Group-wide Adjusted EBITDA for the first half of 2024 was HK$147.7 million (US$18.9 million), up from HK$31 million (US$4.0 million) in the six months ended June 30, 2023.
“Looking forward, the group recognises that global economic developments remain vulnerable and unpredictable to factors such as geopolitical tensions, monetary policies and high interest rates,” it said.
“Given these uncertainties and challenges, the Group is committed to taking an adaptive and cautious approach. Recognizing the significant potential in growth markets across Asia, such as the Philippines, Vietnam and Cambodia, as well as the North American market, the Group will actively explore overseas gaming opportunities in addition to the Macau gaming market.”