Paradise Ent posts $45.7 million loss in 2016

Paradise Entertainment says it has seen positive growth in the U.S. from its strategic accord with IGT, which it says will help it expand in overseas markets.

The Macau-based supplier made the comments in its annual results announcement, in which it said its net loss ballooned to HK$355.1 million (US$45.7 million) for the year ended Dec. 31, 2016, compared to a loss of HK$149 million in 2015.

“We have seen encouraging momentum from IGT distribution in the United States market, especially in Nevada, Pennsylvania and California State, during the year ended Dec. 31, 2016. Undoubtedly, this strategic agreement with IGT will not only expedite our penetration into the overseas markets, but also increase the sustainable revenue base of the group,” it said in its annual report.

Total revenue was HK$1.2 billion in the full year 2016, up 6.5 percent from HK$1.1 billion in the year before, due to strong demand for electronic gaming equipment and system in the Macau market.

Adjusted EBITDA for the year was HK$97.5 million, an increase of 40.1 percent over HK$69.6 million for the year ended Dec. 31, 2015.

Paradise said the increase was mainly due to the solid performance of the gaming system segment and effective cost control over the year.

“The loss for the year ended Dec.31, 2016 was mainly due to the loss arising from assignment of intangible assets of HK$334.8 million in relation to the assignment and license of patent and

 

associated technology to IGT in April 2016,” said the company in a filing on Wednesday.