Casino management and gaming technology services provider, Paradise Entertainment has had a tough first six months of 2019 as Macau casinos struggle amidst ongoing US-China trade war and the slowdown in the Chinese economy.
Paradise Entertainment Limited has posted a drop of 9.6 percent year-on-year drop in half-yearly revenue to June 30, 2019. The company generated HK$23.8 million (US$3 million) in the first half of this year, reveals the group’s most recent financial report.
Paradise Entertainment provides casino management services and sales of electronic gaming systems, mainly at Casino Kam Pek Paradise, which operates under a Sociedades des Jogos de Macau (SJM Holdings) concession license and at Casino Waldo, registered under a concession from Galaxy Entertainment Group.
As of June 30, 2019, the group had a total of 79 gaming tables under its management.
The adjusted EBITDA from casinos managed by the group dropped 15.5 percent year-on-year to HK$66.3 million in the first six months of this year. However, proceeds from the sale of electronic gaming equipment and systems increased 159 percent year-on-year.
Casinos in Macau has been suffering under the prolonged US-China trade war which has also taken a toll on Paradise Group’s earnings this year.
Last month in July, according to the figures released by Macau’s Gaming Inspection and Coordination Bureau,revenue from Macau casinos dropped by 3.5 percent year-on-year.
The drop in revenue was also more than what the analysts had earlier predicted. Analysts had estimated a 3 percent raise or fall in year-on-year revenue.