Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — FY2021 Earnings Presentation
26 slides from Paradise Entertainment's earnings presentation, Mar 24, 2022
Slide 1: Paradise Entertainment Limited 2021 Annual Results
1 Paradise Entertainment Limited (Incorporated in Bermuda with limited liability) 1180.HK 2021 Annual Results 24 March 2022 11
Slide 2: Overview
1. Overview 1 Overview 2 Company Overview 3 Business Update 4 Financial Update About Paradise Paradise Entertainment Limited (SEHK: 1180) Our Strengths, Growth and 5 Comparative Advantages Paradise is one of the world’s unique and leading gaming equipment and systems suppliers in arrays of a range o
Slide 3: Company Overview
2. Company Overview R&D Centres Shenzhen Taiwan Zhuhai Macau Las Vegas Sydney 33
Slide 4: Business Segments
BUSINESS SEGMENTS • Provide casino management services to a • One of the worldwide leading gaming equipment satellite casino which generates stable and and systems providers established strong net cash inflows to the Group • Inventor, patent-owner and sole-supplier of our • Focus on mass gaming segm
Slide 5: Business Update
winup To 42 JACKPOT ALLEY GAMES! LINES BET
Slide 6: Business Update - Highlights
BUSINESS UPDATE - HIGHLIGHTS 1. The outbreak of Covid-19 since early 2020 continued to bring unprecedented challenges to the global economy, inevitably with no exception to the Group’s operations 2. Continued to focus on mass gaming segment in the Macau Peninsula fully utilizing its patented high-te
Slide 7: Gaming Tables and Machines in Operation
Casino Management Services GAMING TABLES AND MACHINES IN OPERATION (Average number of units) FY2021 FY2020 Traditional gaming tables 39 39 LMG gaming tables/machines 10/486* 10/537* (managed by the Group since Aug 2008) Total gaming tables 49 49 Slot machines 89* 77* Note: * = Due to the pandemic wi
Slide 8: Deployment of Gaming Machines
Electronic Gaming Equipment & Systems DEPLOYMENT OF GAMING MACHINES FY2021 FY2020 (Number of machines) (Number of machines) LMG machines in Macau: - sale (for the year) 116 20 - provision of upgrading services (for the year) 1,607 438 Slot machines overseas: - sale (for the year) 99 23 - under lease
Slide 9: Why LMGs in Casinos?
Electronic Gaming Equipment & Systems WHY LMGs IN CASINOS? LMG Table Machine Ratio in Casino Kam Pek Paradise Advantages of LMG over Traditional Gaming Tables: ▪ Improve gaming efficiency and reduce labor costs DICJ Gaming Statistics LMG Gross Revenue MOP$’M 1 :100 3000 ▪ Increase game security and
Slide 10: Survey on Satisfactions with LMGs
Electronic Gaming Equipment & Systems SURVEY ON SATISFACTIONS WITH LMGs The survey was conducted at Casino Kam Pek Paradise from November to mid-December 2021, successfully interviewed 313 casino guests randomly and asked them about their satisfactions with LMGs. The survey included quality of sound
Slide 11: Overview of Slot Machines Worldwide
Electronic Gaming Equipment and Systems OVERVIEW OF SLOT MACHINES WORLDWIDE Geographic Location # of Slots % Africa 32,766 2.2% Asia & Middle East 55,393 3.7% Caribbean 26,236 1.8% Central & South America 268,253 17.9% Europe 309,824 20.7% North America 762,896 51.0% Paradise’s primary strategic foc
Slide 12: Who Are Using Our Slot Machines in North America?
Geographic # of slots # of total % of Electronic Gaming Equipment and Systems locations deployed by the slots total North WHO ARE USING OUR SLOT MACHINES IN NORTH AMERICA? Group* America market Nevada - 168,670 24.1% California 119 75,602 10.8% North America Oklahoma 145 44,987 6.4% Mississippi 32 3
Slide 13: Our Fast-Growing Slot Game Library
Electronic Gaming Equipment and Systems OUR FAST-GROWING SLOT GAME LIBRARY 13 13
Slide 14: Expected Increase in Demand of Gaming Machines
Electronic Gaming Equipment and Systems EXPECTED INCREASE IN DEMAND OF GAMING MACHINES Increase in mass GGR and decrease in VIP GGR Operating cost of traditional gaming tables keep Increase in GGR of gaming machines as a In recent years, Macau government has put much effort to promote increasing per
Slide 15: GGR of Gaming Machines vs Gaming Tables
Electronic Gaming Equipment and Systems GGR OF GAMING MACHINES VS GAMING TABLES North American markets (now) Macau markets (now) Machines 77 Machines 7 Tables 23 Tables 93 Source: DICJ Gaming Statistics 2021 Source: American Gaming Association Statistics 2021 Macau and other South-east Asian markets
Slide 16: AI and Other High-Tech Products
Other Business AI AND OTHER HIGH-TECH PRODUCTS In view of the trend of global attention to public health in recent years, the Group increases its R&D investment on high-tech healthcare innovative products to provide customers with the demand for professional solutions for high- tech products in heal
Slide 17: Financial Update
4. Financial Update For the year ended 31 December 2021 17
Slide 18: Financial Highlights – 2021 Annual Results
FINANCIAL HIGHLIGHTS – 2021 ANNUAL RESULTS GGR Adjusted EBITDA loss 18.4 Casino Kam Pek Paradise HK$ 761.7 (2020: HK$556.6m) m HK$ m (2020: loss of HK$101.1m) Reported Revenue Net loss HK$ 494.1 (2020: HK$351.7m) m HK$ 88.4 m (2020: net loss of HK$192.1m) 18
Slide 19: Group Revenue & Adjusted EBITDA
GROUP REVENUE & ADJUSTED EBITDA Group Adjusted EBITDA by Properties/Nature Reported Revenue by Segment HK$ million FY2021 FY2020 494.1 HK$ million Casinos under the Group’s management: 500 • Casino Kam Pek Paradise 42.3 (42.7) 257.9 78.4 • Casino Waldo (1) - (17.8) 450 351.7 Subtotal 42.3 (60.5) 400
Slide 20: Casino Under Management Performance Highlights
CASINO UNDER MANAGEMENT PERFORMANCE HIGHLIGHTS FY2021 FY2020 FY2019 GGR HK$761.7m (+36.8%) HK$556.6m [-56.2%] 1,270.2m HK$ - Traditional Tables HK$341.4m (+49.9%) HK$227.8m [-66.7%] HK$684.9m - LMG HK$390.7m [+28.4%] HK$304.3m [-43.1%] HK$534.7m - Slot Machines HK$29.6m [+20.8%] HK$24.5m [-51.6%] HK
Slide 21: KPIs for Kam Pek Casino Under Management
KPIs FOR KAM PEK CASINO UNDER MANAGEMENT FY2021 FY2020 HK$ HK$ Total GGR for the year 761.7 million 556.6 million Traditional Gaming Tables GGR per table/day 24,000 22,200 LMG Gaming Tables GGR per table/day 107,000 83,100 GGR per terminal/day 2,202 1,548 Blended Table GGR per table/day 40,900 38,30
Slide 22: Changes in GGR: Casino Kam Pek Paradise vs Macau Market
CHANGES IN GGR: CASINO KAM PEK PARADISE VS MACAU MARKET YoY change in GGR Percentage of GGR to Casino Kam Pek Paradise vs Macau 2019 (pre-Covid-19) GGR Casino Kam Pek Paradise vs Macau 60.0% 40.0% 20.0% 2020 0.0% -20.0% -40.0% 2021 -60.0% 0.0% -80.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2020 2021 60.0% -10
Slide 23: Electronic Gaming Equipment & Systems Performance Highlights
ELECTRONIC GAMING EQUIPMENT & SYSTEMS PERFORMANCE HIGHLIGHTS FY2021 FY2020 Macau Overseas Total LMGs sale for the year (units) 116 --* 116 20 Upgrade of LMGs for the year (units) 1,607 --* 1,607 438 Slots sale for the year (units) -- 99 99 23 Slots under lease up to y.e. (units) -- 220 220 70 Report
Slide 24: Our Strengths, Growth and Comparative Advantages
5. Our Strengths, Growth and Comparative Advantages Net cash position Flexibility to look into new corporate finance projects Patents LMG Patented rights for innovative gaming systems and Limited tables, more seats, mass market gaming equipment: i. Great potential Macau market penetrations in ETGs d
Slide 25: Contacts Information
6. Contacts 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 Suite 1207, 12F, Macau Landmark, No. 555 Avenida da Amizade, Macau SAR Corporate Strategy & Investor Relations Tel: (853) 28
Slide 26: 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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