Palasino Holdings Ltd has reported higher annual revenue for its latest financial year, supported by the rollout of a new casino property in the Czech Republic, even as rising operating costs and investment spending weighed on profit.
For the financial year ended 31 March 2026, the Hong Kong-listed gaming operator recorded total revenue of HK$611.1 million (US$77.9 million), marking a 7.6% increase compared with the previous year. Growth was largely attributed to the addition of its new venue, Palasino Mikulov, alongside an increased emphasis on gaming operations within the group’s portfolio.
Despite the stronger top line, net profit attributable to shareholders fell to HK$13.8 million (US$1.76 million), down 10.4% year-on-year. The company, however, reported improved underlying performance metrics, with adjusted net profit rising 35.7% and adjusted EBITDA increasing 15.6% to HK$60.7 million.
Operational costs linked to expansion played a key role in the weaker net result. Palasino cited higher employee-related expenses of HK$13.5 million, alongside additional hiring for the new Mikulov casino. The company also continued marketing and brand development spending across its core markets, despite reductions in online gaming-related costs.
Gaming drives revenue mix shift
The group’s financial results showed a continued shift toward gaming as its dominant revenue stream. Following the launch phase of Palasino Mikulov, gaming activities accounted for approximately 73.3% of total revenue, up from 72.0% in the previous financial year. Non-gaming segments, including hotels, food and beverage, conferencing and related services, declined proportionally to 26.7%.
As Inside Asian Gaming reports, citing the official company’s report (pdf), Palasino described this trend as evidence of its broader strategic direction, with resources increasingly concentrated on gaming operations as the core driver of performance. Table games and slot machines were key contributors, supported by stronger visitation levels and ongoing promotional activity.
The company also noted improvements in gaming tax-adjusted revenue, which rose by 9.9% year-on-year, reflecting continued momentum across its casino network.
Mikulov launch strengthens Czech footprint
A major development during the reporting period was the introduction of Palasino Mikulov, located near the Czech-Austrian border. The property began a soft launch in December 2025, followed by a formal opening in March 2026, and has since become a central part of the group’s European strategy.
Initial operations included more than 100 slot machines and a range of table games, with the broader facility forming part of a phased development plan. Management has already outlined plans for a second stage of expansion, aimed at increasing capacity and enhancing the overall resort offering.
Palasino stated that the new casino represents a significant milestone in its long-term development, strengthening its position in the Czech Republic’s land-based gaming market and supporting broader regional competitiveness.
Capital investment and operational focus
During the financial year, the group allocated HK$33.6 million in capital expenditure toward the launch of the Mikulov property, alongside wider investment across its existing portfolio. Total cash and liquid assets stood at HK$271.6 million at the end of the reporting period, reflecting an 8.8% decline year-on-year, mainly due to expansion-related spending.
Marketing costs also increased as part of the Mikulov rollout, with the company continuing to invest in brand awareness initiatives aimed at attracting European travellers to its properties.
Management highlighted that the group remains focused on upgrading gaming facilities, improving space utilisation, and enhancing hospitality and conference services across its operations in the Czech Republic, Germany, and Austria.
Looking ahead, Palasino signalled continued investment in both organic expansion and potential acquisitions within its gaming portfolio. The company expects ongoing development of its Czech operations, particularly through the next phase of expansion at Mikulov.
While macroeconomic conditions in Europe were described as challenging, the group maintained that demand for value-driven entertainment experiences has supported resilience across its gaming business.
Management also reiterated that slot machine investment and electronic gaming terminal expansion remain central to its long-term growth strategy, with a focus on increasing visitation and strengthening revenue stability across its properties.