Paradise Entertainment Ltd, the casino management services and gaming equipment provider, has reported a net loss of HKD189.2 million for the full year of 2020 – a stark contrast to the profit totaling HKD926,000 it made in 2019, according to the annual result report released last week.
The sharp decline in earnings by the Group has been ascribed to the negative impact of the pandemic and “subsequent quarantine measures as well as travel restrictions imposed by jurisdictions including Macau and Hong Kong,” according to the statement.
Another dampener was the termination of management services provided to Casino Waldo, a satellite casino under Galaxy Entertainment Group Ltd (GEG), from March 1 last year. This resulted in a loss on disposal/write-off of property, plant and equipment totaling HKD9,663,000; and another impairment loss of HK$5,000,000 in property, plant and equipment, the release said.
The loss was due to the forced shutdown of all local casinos for at least 15 days from February 5 in 2020, a measure imposed by the government to contain Covid-19. It was also hindered by operational constraints, such as the requirement that all patrons present proof of negative Covid-19 test results, and the cessation of operation in Casino Waldo.
To offset the loss, “the Group explored other businesses by making use of its extensive network in the PRC to provide procurement services on behalf of overseas customers.”
Paradise Entertainment is still operating Casino Kam Pek Paradise in Macau, a satellite casino under SJM Holdings Ltd (SJM). As of 31 December 2020, the Group had around 770 employees, including around 380 casino staff employed by SJM to work at Casino Kam Pek Paradise.
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