Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — H1 2024 Earnings Presentation
27 slides from Paradise Entertainment's earnings presentation, Aug 28, 2024
Slide 1: Paradise Entertainment Limited 2024 Interim Results Presentation
Paradise Entertainment Limited (Incorporated in Bermuda with limited liability) 1180.HK 2024 Interim Results Presentation 28 August 2024 1
Slide 2: Agenda
Agenda 1 About Paradise Entertainment 2 Executive Summary For Interim Results 2024 3 2024 Interim Results in a Glimpse 4 Casino Management Services Benefited From GGR Recovery 5 Increasing Demands in Electronic Gaming Equipment and Systems 6 New Focus Games and Awards in 2024 7 Key Dates For 2024 In
Slide 3: About Paradise Entertainment
1 About Paradise Entertainment Casino Management Services Electronic Gaming Equipment and Systems Live Multi- Game Electronic Table Casino Kam Pek Paradise (“LMG”) Games Slot Machines Systems (“ETG”) 83.8% 16.0% - Provider of Casino Management Services to Casino Kam Pek Paradise, a Satellite Casino
Slide 4: About Paradise Entertainment
1 About Paradise Entertainment Hong Kong - Management - Corporate Services Las Vegas - Sale and Distribution Centre Shenzhen and Zhuhai Macau - R&D - Management - Quality Assurance - Casino Kam Pek Paradise - Hardware Sourcing - R&D The Philippines - Sale - Sale and Distribution Centre 4 4
Slide 5: Executive Summary For Interim Results 2024
2 Executive Summary For Interim Results 2024 The Group ❑ Reported revenue: HK$425.3m, +72.4% YoY and +9.7% HoH ❑ Adjusted EBITDA: HK$147.7m, +376.5% YoY and +44.0% HoH ❑ Profit for the period: HK$119.4m, turned to profit YoY and +86.9% HoH Casino Management Services ❑ Gross gaming revenue (“GGR”): H
Slide 6: 2024 Interim Results in a Glimpse – Group's Reported Revenue
3 2024 Interim Results in a Glimpse – Group’s Reported Revenue Reported Revenue: HK$425.3m, +72.4% YoY and +9.7% HoH Reported Revenue and its Breakdown by Segments (in HK$’m) 1,181.8 15.0% By Segments YoY HoH 26.4% 634.3 Casino Management Services +48.5% +9.8% 2.0% 494.1 9.0% 425.3 Electronic Gaming
Slide 7: 2024 Interim Results in a Glimpse – Group's Adjusted EBITDA
3 2024 Interim Results in a Glimpse – Group’s Adjusted EBITDA Adjusted EBITDA: HK$147.7m, +376.5% YoY and +44.0% HoH Adjusted EBITDA (in HK$’m) By Segments YoY HoH 147.7 133.6 Casino Management Services +157.7% +34.4% 102.6 87.0 Electronic Gaming Turned to +314.8% Equipment and Systems profit 31.0 2
Slide 8: 2024 Interim Results in a Glimpse – Group's Profit
3 2024 Interim Results in a Glimpse – Group’s Profit Profit for the Period: HK$119.4m, Turned to Profit YoY and +86.9% HoH Profit (Loss) for the Year/Period (in HK$’m) 119.4 60.9 63.9 10.6 (3.0) 2019 2020 2021 2022 2023 1H23 2H23 1H24 (88.4) (166.3) (192.1) 8 8
Slide 9: 2024 Interim Results in a Glimpse – Group's Balance Sheet
3 2024 Interim Results in a Glimpse – Group’s Balance Sheet Maintains a Healthy Liquidity Position Bank balances and Cash and Gearing Ratio As at 30 June 2024: (in HK$’m) / % 140 140.00% ❑ bank balances and cash of HK$128.1m 119.4% 128.1 (31 December 2023: HK$59.6m) 120 120.00% 100 82.7% 100.00% ❑ t
Slide 10: 2024 Interim Results in a Glimpse – Interim Dividend
3 2024 Interim Results in a Glimpse – Interim Dividend Resumes Interim Dividend in 1H24 as Returns to Shareholders Dividend Payout Ratio (interim dividend over profit for the period) 44.1% HK$119.4m ❑ The Board has declared an interim dividend of HK5.0 cents per share for 1H24 ❑ Has resumed dividend
Slide 11: Casino Management Services Benefited From GGR Recovery
4 Casino Management Services Benefited From GGR Recovery 11 11
Slide 12: Casino Management Services Benefited From GGR Recovery
4 Casino Management Services Benefited From GGR Recovery Casino Management Services Total GGR: HK$651.7m, +48.3% YoY and +9.7% HoH Casino Kam Pek Paradise 1H2024 1H2023 YoY GGR contribution in 1H24: Average No. of Gaming Tables in Operation 30 32 ❑ Traditional table: 36.9% (1H2023: 43.3%) Total GGR
Slide 13: Adjusted EBITDA for Casino Kam Pek Paradise
4 Casino Management Services Benefited From GGR Recovery Casino Management Services Adjusted EBITDA: HK$143.8m, +157.7% YoY and +34.4% HoH Adjusted EBITDA For Casino Kam Pek Paradise (in HK$’m) 162.8 143.8 141.5 107.0 55.8 42.3 2019 2020 2021 2022 2023 1H23 2H23 1H24 (42.7) (38.0) 2019 2020 2021 202
Slide 14: Visitor Arrivals in Macau – room to grow
4 Casino Management Services Benefited From GGR Recovery Casino Management Services Principal Source of Mainland Visitors To Macau Visitor Arrivals in Macau – room to grow Relaxation of “Individual Visit Scheme” Regions 1H24 1H23 Tourists to Macau Tourists to Macau YoY Guangdong 6,069,705 4,159,824
Slide 15: Mass Market Focus
4 Casino Management Services Benefited From GGR Recovery Casino Management Services Mass Market Focus Higher Engagement Lower Minimum Bets Higher Capacity of Games 10 ~1,000 20 ~100 LMG LMG Traditional Slot Tables Terminals Mass Tables Machines 15 15 Remark: Numbers represent average numbers of gami
Slide 16: Increasing Demands in Electronic Gaming Equipment and Systems
5 Increasing Demands in Electronic Gaming Equipment and Systems 16 16
Slide 17: Electronic Gaming Equipment and Systems Revenue of HK$68.2m
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems Revenue of HK$68.2m, +1,648.7% YoY and +28.2% HoH Revenue of 1H24: Revenue (in HK$’m) ➢ Sale (HK$47.1m) • 69.1% of total segment revenue 78.4 • No. of LMG terminals sold: 235 68.2 • Partnership wi
Slide 18: Adjusted EBITDA of HK$11.2m, turned to profit
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems Adjusted EBITDA of HK$11.2m, turned to Profit YoY and +314.8% HoH • Adjusted EBITDA turned to profit of Adjusted EBITDA HK$11.2m in 1H24 (in HK$’m) 5.4 • Adjusted EBITDA margin improves to 16.4% (
Slide 19: Increasing Demands: 2024 & Beyond
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems Increase 2024 & Beyond Penetration Expanding in North from Existing Penetration America New Electronic into Southeast Deployment Gaming Asia Regions of LMG, ETG and Equipment Slot and Systems* Mac
Slide 20: Increasing Demands in Electronic Gaming Equipment and Systems
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems 20 20
Slide 21: Penetration into Southeast Asia Regions – e.g. The Philippines
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems No. of International Tourists Arrivals to The Penetration into Southeast Asia Regions – e.g. The Philippines Philippines From 2012 to 2023 (in ’m) 8.3 • According to Department of Tourism of The P
Slide 22: The Philippines
5 Increasing Demands in Electronic Gaming Equipment and Systems Electronic Gaming Equipment and Systems The Philippines Traditional Slot Machines Mini Slot Machines - Bingo Electronic Table Games Products 15+ Integrated Resorts* ~ 50 Casino under Casino Filipino** Gaming Centers in Shopping Malls Ch
Slide 23: New Focus Games and Awards in 2024
6 New Focus Games and Awards in 2024 Electronic Gaming Equipment and Systems Approval of self-developed game “Mori Dice” in July 2024 Awarded “Potential Technology Enterprise”(潛力型科技企業) certificate in Macau in May 2024 23 23
Slide 24: Key Dates For 2024 Interim Dividend
7 Key Dates For 2024 Interim Dividend Declaration Book Close Period Payment 28 August 2024 17 - 20 September 15 October 2024 2024 24 24
Slide 25: Summary of Our Key Differentiators
8 Summary of Our Key Differentiators Patent-Protected Technologies and Increasing Demand for Strong Team of Talents Electronic Gaming Machines (Gaming Machines) (Gaming Machines) Inventor, patent owner and sole supplier of our flagship product Macau is shifting from VIP to mass market; awareness of
Slide 26: Contacts Information
Contacts Information To follow us on WeChat Hong Kong Office Corporate Strategy & Investor Relations Unit C, 19F, Entertainment Building, 30 Queen’s Road Central, Hong Kong SAR Tel: (852 ) 2620 5303 Leo Chan – Chief Financial Officer and Company Secretary Macau Office Suite 1207, 12F, Macau Landmark
Slide 27: 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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