A Macau’s leading gaming and entertainment operator, Paradise Entertainment Ltd, reveals that the company generated a profit of US$7.8 million in 2023. The value added to the company’s 2023 balance sheet after all deductions reportedly compensates the loss of US$21.3 million sustained in 2022. According to Paradise Entertainment, the revenue increased in 2023 to set off the prior year’s loss and generate additional profit was primarily driven by the increased visits of gaming enthusiasts to the Casino Kam Pek operated by the Macau company, Inside Asian Gaming (IAG) reports.
US$81.1 Million in GGR in 2023:
As the name of the casino facility suggests, the post-pandemic come back of patrons reportedly resulted in the US$81.1 million gross gaming revenue generated across the Paradise Entertainment group in 2023. The company indicates that the improved results represent a 113% increase in the group’s overall revenues. As for the Kam Pek, the source reports that this casino resort contributed as much as US$72.2 million to the group-wide revenues, with its revenue level representing around 89% of the group’s 2023 revenue figure.
Kam Pek operates an extensive gaming floor under the concession of SJM Resorts S.A. with casino management services rendered by Paradise Entertainment Ltd. According to IAG, the casino includes 24 traditional gaming tables, 10 Live Multi-Game tables, 860 Live Multi-Game terminals, and 96 slot machines. In addition to revenues generated from electronic gaming equipment and systems, Paradise sold 260 Live Multi-Game terminals in 2023 against none sold in 2022 to boost the segment revenue levels to US$6.9 million in 2023, or more than 10 times over the 2022 standing.
Consequently, the increased handle and sales volume generated increased revenue for the group. The trend reflected on the overall Adjusted EBITDA figures reaching the US$20.8 million figure to set off the Adjusted EBITDA loss of US$4.9 million seen in 2022.
Using Momentum to Expand Abroad:
The company is seemingly determined to use the momentum to ensure a consistent revenue growth in the forthcoming period. As reported, Paradise’s strategy is primarily focused to benefit from the outstanding Live Multi-Game performance in 2023. The company reportedly said that it was “actively seeking” international expansion opportunities for the profitable product group, with the neighboring markets identified as the most suitable ones for the start.
As reported by IAG, Paradise considers that the Philippine market, holding the title of the largest electronic machine market in Asia, has got ”good potential”. Also, the company considers that the Philippine market offers ”better flexibility with numerous casinos and a variety of gaming types.”
“Further, the Philippines market is relatively more international and adheres to general standards for gaming machines aligning with global norms. The electronic gaming equipment and systems developed for the Philippines market can normally be promoted to other gaming markets in the world with little modification, ” the company reportedly stated.
It seems that the international expansion starting from the Philippines is only a matter of time for Paradise Entertainment Ltd. “The Group is ready to go into [the Philippines and other Southeast Asian] markets to expand its businesses in these … markets, while it will continue to explore business opportunities in the North American gaming markets,” the company reportedly said.