Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — H1 2019 Earnings Presentation
40 slides from Paradise Entertainment's earnings presentation, Aug 22, 2019
Slide 1: Paradise Entertainment Limited 2019 Interim Results
1 Paradise Entertainment Limited (Incorporated in Bermuda with limited liability) 1180.HK 22 August 2019 2019 Interim Results
Slide 2: Contents
ONTENTS 1 PART ONE COMPANY OVERVIEW 2 PART TWO BUSINESS STRATEGY 3 PART THREE FINANCIAL SUMMARY 4 PART FOUR GROWTH OPPORTUNITY 5 PART FIVE SUMMARY – OUR KEY DIFFERENTIATORS 6 PART SIX PHOTO GALLERY 2
Slide 3: Part One: Company Overview
PART ONE Company Overview 3
Slide 4: Corporate Structure
01 CORPORATE STRUCTURE Paradise Entertainment 1180.HK R&D Centres Shenzhen Sydney Las Vegas Zhuhai Macau Taiwan 4
Slide 5: How Did We Arrive Here?
01 HOW DID WE ARRIVE HERE? Paradise Entertainment 2014 • Granted another casino service management license and started casino management business in 2007 Casino Waldo 2016 2008 • Strategic partnership with IGT • Granted casino service and assigned to IGT 15 years’ management license and initiated ca
Slide 6: Chief Executive
01 CHIEF EXECUTIVE Paradise Entertainment Mr. Jay Chun Chairman and Managing Director • Chairman and Managing Director of Paradise Entertainment Limited • Founder & Chairman of the Macau Gaming Equipment Manufacturers Association • Member of the Shandong Provincial Committee of the Chinese People’s
Slide 7: Part Two: Business Strategy
PART TWO Business Strategy 7
Slide 8: Business Segments
02 BUSINESS SEGMENTS Paradise Entertainment • Major local gaming equipment and systems • Provides casino management services to two provider in Macau satellite casinos which generate stable and • Inventor, patent-owner and sole-supplier of strong cash inflow to the Group our flagship product – LMG •
Slide 9: How Are We Leading in LMG in Macau?
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems LMG GGR in Macau # of LMG terminals (MOP’m) 6,000 2,728 2,431 2,350 2,500 5,000 2,256 2,120 2,000 4,000 1,487 1,500 3,000 5,252 895 4,885 4,538 4,613 1,000 2,000 3,742 3,196 2,835 1,000 500 1,852 0 - FY2012 FY2013 FY2014
Slide 10: How Are We Leading in LMG in Macau?
02 HOW ARE WE LEADING IN LMG IN MACAU? Electronic Gaming Equipment and Systems Macau Deployment LMG MARKET SHARE Average Daily Net win of 5,200+ 100% HK$136,500 Per LMG table in Casino Kam Pek Paradise ▪ Flagship product ▪ Patent-protected ▪ 100% market share of LMG in Macau ▪ 5,200+ LMG terminals i
Slide 11: Who Are Customers of Our LMG Machines in Macau?
02 WHO ARE CUSTOMERS OF OUR LMG MACHINES IN MACAU? Electronic Gaming Equipment and Systems 11
Slide 12: Who Are Customers of Our LMG Machines Globally?
02 WHO ARE CUSTOMERS OF OUR LMG MACHINES GLOBALLY? Electronic Gaming Equipment and Systems Number of terminals Accumulative number of LMG machines deployed in Macau and Overseas Markets 6,000 5,252 4,885 5,000 4,538 4,613 4,000 3,742 3,196 2,835 3,000 1,852 2,000 1,000 505 601 638 280 378 154 206 0
Slide 13: Why LMGs in Casinos?
02 WHY LMGs IN CASINOS? Electronic Gaming Equipment and Systems Table Machine Ratio In Casino Kam Pek Paradise Advantages of LMG over traditional gaming tables: 1 :100 ▪ Improve gaming efficiency and reduce labor costs ▪ Increase game security and reliability Total LMG GGR in Macau 1H2019 ▪ Keep pri
Slide 14: International Partners
02 INTERNATIONAL PARTNERS Electronic Gaming Equipment and Systems ▪Strategic partnership with IGT ▪ Alliance with LT Game Japan and other leading gaming companies 14
Slide 15: Where the Gross Gaming Revenue Comes From?
02 WHERE THE GROSS GAMING REVENUE COMES FROM? Casino Management Services 1H2019 GGR: 1H2019 GGR: HK$637 million HK$267 million (operate since Aug 2008) (operate since Mar 2014) Casino Casino WALDO KAM PEK PARADISE TOTAL 49 x TOTAL 30 x Traditional 39 x Traditional 25 x LMG / Terminal 10 x 1,000 LMG
Slide 16: Our Target Market
02 OUR TARGET MARKET Casino Management Services VIP Premium Mass Mass Grind Mass Our Target Market Our Latest Innovative ETG for Mass Market 16
Slide 17: Part Three: Financial Summary
PART THREE Financial Summary 17
Slide 18: Financial Summary – 2019 Interim Results
03 FINANCIAL SUMMARY – 2019 INTERIM RESULTS Paradise Entertainment Total GGR from the Adjusted EBITDA 63.3 2 casinos under management 904 HK$ million HK$ million Net Profit Reported Revenue HK$ 592 million HK$ 23.8 million 18
Slide 19: Financial Summary - Highlights
03 FINANCIAL SUMMARY - HIGHLIGHTS Paradise Entertainment Reported Revenue: HK$592 million 904 1H2019 Total GGR 15.7% of total reported revenue Casion Kam Pek Paradise & Casino Waldo: HK$ million Casino Management Adj. EBITDA Services 63.3 GGR Contributed by: Electronic Gaming Equipment & Casino Casi
Slide 20: KPIs for the Casinos Under Management
03 FINANCIAL SUMMARY – KPIs for the 2 casinos under management Paradise Entertainment Casino KAM PEK PARADISE Casino WALDO 1H2019 1H2018 1H2019 1H2018 HK$ HK$ Total GGR for the period HK$ HK$ Total GGR for the period 637 million 688 million 267 million 237 million GGR per unit per day: GGR per unit
Slide 21: Revenue & Adjusted EBITDA
03 FINANCIAL SUMMARY- REVENUE & ADJUSTED EBITDA Paradise Entertainment Adjusted EBITDA by Properties / Nature Reported Revenue by Segment HK$ million 592 564 HK$ Million 1H2019 1H2018 15.7% 9.8% 600 93 55 Casino management services: 500 400 • Casino Kam Pek Paradise 66.0 103.8 300 499 509 200 84.3%
Slide 22: Part Four: Growth Opportunity
PART FOUR Growth Opportunity 22
Slide 23: Slot Machine Market
04 SLOT MACHINE MARKET • Slot games have a shorter replacement cycles than ETG • Large potential market for slot machines globally • Start to deploy our new slot machines in Americas and South East Asia etc. Region Market Overview Business Opportunities North America Around 1 million slot machines L
Slide 24: LMG Growth Continues
04 LMG GROWTH CONTINUES DICJ published new DETG technical From 1 July 2018, new application of standards in December 2017 with DETG must fully comply with new the effective date of 1 January 2018 standards Existing LMG machines in Macau will have to be either upgraded or replaced so as to comply ful
Slide 25: New Products Pipeline
04 NEW PRODUCTS PIPELINE Our new products are in the pipeline of being launched to markets in near term 25
Slide 26: Part Five: Summary – Our Key Differentiators
PART FIVE Summary – Our Key Differentiators 26
Slide 27: Summary Considerations – Key Differentiators
05 SUMMARY CONSIDERATIONS – KEY DIFFERENTIATORS Paradise Entertainment Inventor, Patent Owner & Global Footprint Fully Tested and Approved Professional Gaming Sole Supplier by Regulators Technological Support Leveraging International Independent third-party labs Provide gaming technological Monopoli
Slide 28: Part Six: Photo Gallery
PART SIX Photo Gallery 28
Slide 29: Latest Slot Games
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Slide 30: Latest Slot Machines
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Slide 31: Latest Slot Machines
Latest Slot Machines 31
Slide 32: Horse Racing Machines
Horse Racing Machines 32
Slide 33: Innovative Casino Equipment
Innovative Casino Equipment 33
Slide 34: Automatic Baccarat
Automatic Baccarat 34
Slide 35: Multi-Roulette
Multi-Roulette 35
Slide 36: Automatic Chips & Cash Exchange
Automatic Chips & Cash Exchange 36
Slide 37: LMG Machines in Casino Kam Pek Paradise
LMG Machines in Casino Kam Pek Paradise 37
Slide 38: LMG Machines in Casino Waldo
LMG Machines in Casino Waldo 38
Slide 39: Contact Information
CONTACT INFORMATION To follow us on WeChat, Hong Kong Office Unit C, 19F, Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Tel: (852 ) 2620 5303 Macau Office Corporate Strategy & Investor Relations Suite 1207, 12F, Macau Landmark, No. 555 Avenida da Amizade, Macau SAR Tel: (853) 2878 7
Slide 40: Disclaimer
Disclaimer This document has been prepared by Paradise Entertainment Limited (abbreviated as “Paradise” or the “Company”) for the sole purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any bas
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