Paradise Entertainment flags HKD82.6 million first-half loss after Kam Pek closure

Hong Kong-listed gaming equipment supplier and former manager of Casino Kam Pek Paradise, Paradise Entertainment Limited, expects to record a loss of HKD82.6 million (USD10.5 million) for the first half of 2026, reversing a HKD177.8 million profit a year earlier.

The company said in a profit warning filed Friday with the Hong Kong Stock Exchange that it expects to record a loss for the six months ended June 30, 2026.

The board cited two main factors for the reversal. First, it highlighted that the company’s casino management services in Macau ended when its service agreement expired and was not renewed, effective Dec. 2, 2025.

As a result, Paradise recognized no revenue from “such business” in the first half of 2026, compared with HKD382.6 million a year earlier.

Second, revenue from the sale and leasing of electronic gaming equipment and systems fell HKD93.1 million, or 74.2%, driven by weaker sales of live multi-game (LMG) terminals and systems in Macau.

Paradise said customers “might have opted to postpone their purchases in anticipation of the new version of LMG,” referring to its next-generation Black Coral platform, which is scheduled to launch in the second half of 2026 or early 2027.

The prior-year profit included HKD148.8 million from the now-discontinued casino management operation and HKD29 million from continuing operations.

Paradise said it is still finalizing its unaudited consolidated results for the period and expects to publish its interim results by the end of August 2026.

In a separate announcement, the company said its board will meet Aug. 27 to consider and approve the unaudited interim results and whether to declare any interim dividend.