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Paradise Entertainment is anticipating reporting a loss in the first half of 2026 as its income from selling and leasing electronic gaming devices and systems declined by 74.2%. The gaming equipment provider based in Hong Kong is projecting a net loss of HK$82.6 million, which is equal to $10.6 million, against a net profit of HK$177.8 million, or $22.8 million, last year.
The expected result was disclosed in a profit warning filed on Friday. Paradise Entertainment is still finalizing its unaudited consolidated financial results and expects to publish its interim results by the end of August.
LMG Sales Weigh On Revenue
Revenue from electronic gaming equipment and systems declined by HK$93.1 million, or $11.9 million. The company pointed particularly to lower sales of live multi-game terminals and systems in Macau.
Paradise Entertainment linked part of the decline to the planned launch of Black Coral, its next-generation LMG platform. The new system is scheduled to enter the market during the 2H of 2026 or in early 2027.
The company said some customers may have delayed purchases while waiting for the new LMG version. This reduced sales of its existing platform during the first-half reporting period and contributed to the expected decline in equipment-related revenue.
Casino Management Revenue Ends
The expected loss was also affected by the end of Paradise Entertainment’s casino management services business in Macau. The applicable service agreement lapsed without renewal on Dec. 2, 2025.
Consequently, the company did not generate income through its casino management services in Macau in the first six months of 2026. The service had previously earned HK$382.6 million ($49.1 million) in income during the same period in 2025.
The absence of that business created another difference between the 2 reporting periods. Income from the discontinued operation had helped contribute to the company’s income in the previous year, but it was not accounted for in the current period’s income anymore.
Prior-Year Profit Included Discontinued Business
Paradise Entertainment’s profit for the previous-year period included HK$148.8 million, or $19.1 million, from the discontinued casino management operation. Profit from continuing operations stood at HK$29 million, or $3.7 million.
The comparison between the 2 periods is affected by both lower equipment revenue and the loss of casino management income. The company’s expected first-half loss reflects the combined effect of these changes in its business activities.
Paradise Entertainment has not yet released its final unaudited results. The figures in the profit warning remain an expected outcome until the company publishes its interim financial statements.
Black Coral Launch Remains Planned
The planned introduction of Black Coral remains an important factor in the company’s equipment business. Customers’ possible decision to wait for the next-generation platform reduced demand for the existing LMG products during the latest reporting period.
The platform is scheduled for release in the 2H of 2026 or early 2027. Until then, the company’s equipment revenue will be reported against a period affected by postponed purchases and lower sales of LMG terminals and systems in Macau.
Paradise Entertainment expects to publish its interim results by the end of August. The report will provide the company’s finalized unaudited consolidated figures for the first half of 2026.
Source: Asia Gaming Brief
