Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — FY2017 Earnings Presentation
27 slides from Paradise Entertainment's earnings presentation, Mar 26, 2018
Slide 1: Paradise Entertainment Limited (1180.HK) Investor Presentation
Paradise Entertainment Limited 滙彩控股有限公司 (1180.HK) Investor Presentation 26 March 2018 26 March 2018 1 26 March 2018
Slide 2: Content
Content A Overview B Gaming Equipment and Systems (i) Flagship product - LMG in Macau (ii) Overseas LMG Deployment (iii) Other Gaming Equipment and Systems C Casino Management Services - Casino Kam Pek Paradise and Casino Waldo D 2017 Annual Results E Outlook 2
Slide 3: (A) Overview
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Slide 4: What is Paradise?
What is Paradise? ▪ Listed on the Main Board of the Hong Kong Stock Exchange (1180.HK) ▪ Currently has two major operating segments ▪ Gaming Equipment and Systems ▪ Major local gaming equipment and systems provider in Macau ▪ Inventor, patent-owner and sole-supplier of our flagship product - LMG ▪ S
Slide 5: Key Statistics of Paradise
Key Statistics of Paradise Historical Financial Summary (in HK$ millions) 2015 2016 2017 Market Statistics Revenue 1,092.1 1,163.3 1,011.8 Gross profit 412.9 453.8 405.9 Adjusted EBITDA 69.6 97.5 22.8 Per Share Stock Price HK$1.00 Loss for the year (148.9) (355.1) (47.5) (23/3/2018) Bank Balances an
Slide 6: (B) Gaming Equipment and Systems
(B) Gaming Equipment and Systems 6
Slide 7: (i) Flagship Product - Live Multi Game (LMG) in Macau
(i) Flagship Product - Live Multi Game (“LMG”) in Macau ▪ Patent-protected ▪ 100% market share of LMG in Macau ▪ Around 61% market share of ETG in Macau up to Q1 2017 ▪ 4,600+ LMG terminals installed in 26 casinos as at 31/12/2017 in Macau ▪ Average daily net win of HK$1,405 per terminal or HK$136,4
Slide 8: LMG Performance and Deployment in Macau
LMG Performance and Deployment in Macau LMG GGR in Macau # of LMG Units LMG GGR 6-year compound annual growth of 22% (MOP’m) 6000 3000 2431 5000 2350 2500 2256 2120 4000 2000 1487 4927 3000 4613 1500 4538 895 3742 2000 3196 1000 2835 1000 1852 500 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Curren
Slide 9: LMG Deployment (Sold vs Revenue Sharing) in Macau
LMG Deployment (Sold vs Revenue Sharing) in Macau # of LMG Units 6000 4927 5000 4538 4613 4000 1724 3742 1627 1630 3196 3000 2835 1727 1393 1852 1120 2000 715 2986 3203 2908 1000 1803 2015 1715 1137 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Current date LMG Sold Units LMG Revenue Sharing The curre
Slide 10: Market Share in Macau
Market Share in Macau ETG market share by manufacturer in Macau, 2012-2017 1Q2017 61% 20% 8% 11% FY2016 60% 20% 9% 11% FY2015 65.0% 17.5% 10.0% 7.5% FY2014 60.3% 17.7% 12.5% 9.5% FY2013 55.6% 18.6% 17.0% 8.8% FY2012 48.2% 17.5% 26.2% 8.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Paradise (LT Game
Slide 11: New DETG Technical Standards in Macau
New DETG Technical Standards in Macau ➢DICJ published new DETG technical standards in December 2017 with the effective date of 1 January 2018 ➢Casinos have a grace period of six months to 30 June 2018 to transit to new standards. From 1 July 2018, new application of DETG must fully comply with new s
Slide 12: (ii) Overseas LMG Deployment
(ii) Overseas LMG Deployment ▪ Deepen relationship with strategic partner - IGT ▪ IGT is the world's leading gaming company. It is listed on the New York Stock Exchange under the trading symbol "IGT." ETG (LMG & RNG) Market Patent & Technology Assignment and License Agreement signed between Paradise
Slide 13: Casinos with LMG Deployment
Casinos with LMG Deployment # of Casinos 30 41 34 40 25 25 20 19 16 15 10 27 25 26 10 19 15 14 14 13 5 10 9 6 0 3 4 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Current date Macau Overseas Major Casinos in Macau with LMG Major Overseas Casinos with LMG Venetian Macau Parisian Canberra Casino Trans Ho
Slide 14: Deployment of LMG Terminals
Deployment of LMG Terminals Number of Units Accumulative overall LMG deployment in Macau and Overseas Markets 3500 5,432 5,118 4,916 3000 2500 4,022 3,402 2000 2,989 3203 1500 2908 2986 1,852 1000 2015 1715 1803 1727 1724 1630 1627 1393 1137 1120 427 427 500 328 715 206 230 154 50 50 78 78 0 0 0 0 0
Slide 15: (iii) Other Gaming Equipment and Systems
(iii) Other Gaming Equipment and Systems Over 100 new products roll-out at MGS Entertainment Show 2017 (held in November 2017) They are in the pipeline of launching to markets in near term New Slot Machines Fast Betting Terminal Virtual Horse Racing Terminal 15
Slide 16: New Developed/Developing Products in the Pipeline
New Developed/Developing Products in the Pipeline of Launching in Near Term E-Baccarat Table Roulette Personal Dice Intelligent Card Shoe Airline Concept Betting Terminal Trend Tracker Display Multi Roulette 16
Slide 17: New Developed/Developing Products in the Pipeline
New Developed/Developing Products in the Pipeline of Launching in Near Term Robotic Dealer (save labor costs and improve gaming accuracy and efficiency, etc.) Currency Exchange/ Chip redemption Machines 17
Slide 18: (C) Casino Management Services
(C) Casino Management Services 18
Slide 19: Overview Of Two Casinos Under Management
Overview Of Two Casinos Under Management LT (Macau) Limited (a wholly-owned subsidiary of Paradise) entered into service agreements for providing of casino management services to below two satellite casinos. Gaming related revenue generated from LT (Macau) Limited from Casino Kam Pek Paradise are ex
Slide 20: Target Market and Macau Infrastructure
Infrastructure and mass segment Overnight Visitors A long term & sustainable targeted market ▪ Hong Kong-Zhuhai-Macau Bridge expects to open in mid 2018, facilitate foot traffic visitation VIP to Macau. Tend to be same-day visitors Tend to be overnight visitors ▪ New policy favors day-trip market Pr
Slide 21: (D) 2017 Annual Results
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Slide 22: 2017 Annual Results Highlights
2017 Annual Results Highlights ➢ Group revenue recorded HK$1,011.8m (-13% yoy) ▪ Revenue from casinos under the Group’s management recorded HK$973.9 million (increased by HK$6.1 million or 0.6% yoy) - stable growth in revenue of the two casinos under Group’s management ▪ Revenue from electronic gami
Slide 23: 2017 Annual Results Highlights - continued
2017 Annual Results Highlights - continued ➢ KPI of the two casinos under Group’s management ▪ Total GGR for 2017: - increased by 1.0% to HK$1,249.7 million at Casino Kam Pek Paradise - increased by 6.0% to HK$513.1 million at Casino Waldo ▪ Daily net win per table/terminal: Casino Kam Pek Casino Wa
Slide 24: Analysis of Revenue, GGR and Adjusted EBITDA
Analysis of Revenue, GGR and Adjusted EBITDA HK$ million Revenue by Segment 1400 1,163.3 1200 Adjusted EBITDA by properties/nature 1,011.8 195.5 1000 17% 37.9 HKD Million FY2017 FY2016 4% 800 Casinos under Group’s management: 83% 96% 600 - Casino Kam Pek Paradise 154.1 131.4 967.8 973.9 - Casino Wal
Slide 25: Analysis of 2017 Annual Results
Analysis of 2017 Annual Results (HK$ million) 2017 2016 Remarks Revenue 1,011.8 1,163.3 Casinos under 973.9 967.8 Increase in total GGR from casinos under management management Gaming equipment and 37.9 195.5 Lower sale in 2017 and change of contractual arrangement with systems Casino MJC Adjusted E
Slide 26: (E) Outlook
(E) Outlook ➢ As major local gaming equipment provider and sole supplier of LMG in Macau, Paradise will continue to increase market share in Macau ETG market and focus on having sustainable revenue ➢ Accelerate replacement cycle of existing LMG terminals to comply with new technical standards and de
Slide 27: Contact Information
Contact Information Hong Kong Office Corporate Strategy & Investor Relations Unit C, 19/F., Entertainment Building, Bob Shen, Investor Relations Manager 30 Queen’s Road Central, Hong Kong SAR Bobshen@hk1180.com Tel: (852) 2620 5303 Fax: (852) 2620 6000 (852) 26205303/ 9168 6118 (86) 18576453107 Maca
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