Paradise Entertainment Limited · HKEX:1180
Paradise Entertainment — FY2022 Earnings Presentation
24 slides from Paradise Entertainment's earnings presentation, Mar 28, 2023
Slide 1: Paradise Entertainment Limited 2022 Annual Results
1 Paradise Entertainment Limited (Incorporated in Bermuda with limited liability) 1180.HK 2022 Annual Results 28 March 2023 1
Slide 2: 1. Overview
1. Overview 1 Overview 2 Company Overview 3 Business Review 4 Financial Review 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: 2. Company Overview
2. Company Overview qe ‘Paradise ent
Slide 4: Business Segments
BUSINESS SEGMENTS • Provide casino management services to a • One of the worldwide leading gaming equipment Macau satellite casino which generates stable and systems providers established and strong net cash inflows to the Group • Inventor, patent-owner and sole-supplier of our • Focus on mass gamin
Slide 5: 3. Business Review
WIN UP TO 42 JACKPOT ALLEY GAMES! cm —~ ' 3 3 RULES
Slide 6: Business Review - 2022
BUSINESS REVIEW - 2022 1. The Covid-19 pandemic continued to have a materially adverse effect on the Group’s business and financial performance for the year ended 31 December 2022. 2. Entering 2023, we see some green shoots of recovery and the Macau government has started to ease travel restrictions
Slide 7: Gaming Tables and Machines in Operation
Casino Management Services GAMING TABLES AND MACHINES IN OPERATION (Average number of units in operation) FY2022 FY2021 Traditional gaming tables 31 39 LMG gaming tables/machines 8/493 10/486 (managed by the Group since Aug 2008) Total gaming tables 39 49 Slot machines 98 89 * Due to the pandemic wi
Slide 8: Deployment of Gaming Machines
Electronic Gaming Equipment & Systems DEPLOYMENT OF GAMING MACHINES FY2022 FY2021 (Number of machines) (Number of machines) LMG machines in Macau: - sale - 116 - provision of upgrading services 149 1,449 Slot machines in overseas markets: - sale 498 99 8
Slide 9: Why LMGs in Casinos?
Electronic Gaming Equipment & Systems WHY LMGs IN CASINOS? Traditional Mass Table LMG Stadium Single Shift Single Day Single Shift Single Day 1 pit manager 1 supervisor 12 staffs 2 supervisors 45 staffs 3 dealers 12 dealers 1 table, 2 games Tables required simultaneously Tables required 10 tables Cu
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: Our Fast-Growing Slot Game Library
Electronic Gaming Equipment and Systems OUR FAST-GROWING SLOT GAME LIBRARY 12 12
Slide 13: 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 14: 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: American Gaming Association Statistics 2021 Source: DICJ Gaming Statistics 2021 Macau and other South-east Asian Competi
Slide 15: 4. Financial Review
4. Financial Review For the year ended 31 December 2022 15
Slide 16: Financial Highlights – 2022 Annual Results
FINANCIAL HIGHLIGHTS – 2022 ANNUAL RESULTS GGR Adjusted EBITDA Casino Kam Pek Paradise 109.0 HK$ 490.9 (2021: HK$761.7m) m Loss of HK$ (2021: loss of HK$18.4m) m Reported Revenue Net loss HK$ 297.8 (2021: HK$494.1m) m HK$ 166.3 m (2021: net loss of HK$88.4m) 16
Slide 17: Group Revenue & Adjusted EBITDA
GROUP REVENUE & ADJUSTED EBITDA Group Adjusted EBITDA by Properties/Nature Reported Revenue by Segments HK$ million HK$ million FY2022 FY2021 494.1 Casino under the Group’s management: 500 78.4 • Casino Kam Pek Paradise (38.0) 42.3 450 Subtotal (38.0) 42.3 400 297.8 177.3 350 Electronic gaming equip
Slide 18: Casino Under Management Performance Highlights
CASINO UNDER MANAGEMENT PERFORMANCE HIGHLIGHTS FY2022 FY2021 GGR HK$ 490.9m [-35.6%] HK$ 761.7m - Traditional Tables HK$207.5m [-39.2%] HK$341.4m - LMG HK$255.9m [-34.5%] HK$390.7m - Slot Machines HK$27.5m [-7.1%] HK$29.6m GGR Contribution - Traditional Tables 42.3% 44.8% - LMG 52.1% 51.3% - Slot Ma
Slide 19: KPIs for Kam Pek Casino Under Management
KPIs FOR KAM PEK CASINO UNDER MANAGEMENT FY2022 FY2021 HK$ HK$ Total GGR for the year 490.9 million 761.7 million Traditional Gaming Tables GGR per table/day 18,300 24,000 LMG Gaming Tables GGR per table/day 87,600 107,000 GGR per terminal/day 1,422 2,202 Blended Table GGR per table/day 32,600 40,90
Slide 20: Changes in GGR: Casino Kam Pek Paradise vs Macau Market
CHANGES IN GGR: CASINO KAM PEK PARADISE VS MACAU MARKET YoY change in GGR % to 2019 GGR (pre-Covid-19) Casino Kam Pek Paradise vs Macau Casino Kam Pek Paradise vs Macau 60.00% 43.70% 40.00% 36.80% 2021 20.00% 0.00% 2022 2021 2022 -20.00% -40.00% -35.60% 0.00% 10.00% 20.00% 30.00% 40.00% -51.40% 50.0
Slide 21: Electronic Gaming Equipment & Systems Performance Highlights
ELECTRONIC GAMING EQUIPMENT & SYSTEMS PERFORMANCE HIGHLIGHTS 2022 2021 Macau Overseas Total Macau Overseas Total Reported Revenue 7.4m HK$21.3m HK$28.7m HK$ 64.7m HK$ 10.9m HK$ HK$ 75.6m HK$ (37.4)m (52.6)m HK$ R&D and Other Costs incurred (53.6) m HK$ HK$ (21.2) m Adjusted EBITDA (loss) 21
Slide 22: 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 23: 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 24: 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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