TLDR
- Paradise Entertainment expects a net loss of HK$82.6 million ($10.6 million) for the first half of 2026.
- The company reported a profit of HK$177.8 million ($22.8 million) during the same period last year.
- Revenue from gaming equipment sales and leasing dropped 74.2% year over year.
- Paradise Entertainment’s casino management service agreement in Macau ended in December 2025 and was not renewed.
- The company’s new gaming platform, Black Coral, is set to launch in the second half of 2026 or early 2027.
Paradise Entertainment, a Hong Kong based gaming equipment provider, expects to report a loss for the first half of 2026. The company filed a profit warning on Friday explaining the reasons behind the drop.
The company projects a net loss of HK$82.6 million, or $10.6 million. That compares to a net profit of HK$177.8 million, or $22.8 million, during the same period last year.
Paradise Entertainment is still finalizing its unaudited financial results. The company expects to release its full interim report by the end of August.
Equipment Sales Decline
Revenue from electronic gaming equipment and systems fell by HK$93.1 million, or $11.9 million. The company said lower sales of live multi-game terminals and systems in Macau were a main cause.
Paradise Entertainment linked the drop partly to its upcoming Black Coral platform. This next generation system is scheduled to launch in the second half of 2026 or early 2027.
Some customers appear to have delayed purchases while waiting for the newer platform. This reduced demand for the company’s current equipment line during the reporting period.
The delay in purchases directly affected income tied to equipment sales and leasing. Paradise Entertainment did not provide a specific number of customers who held off buying.
Casino Management Business Ends
Paradise Entertainment’s expected loss also reflects the end of its casino management services business in Macau. The relevant agreement expired without renewal on December 2, 2025.
Because of this, the company earned no income from casino management services in Macau during the first half of 2026. That business brought in HK$382.6 million, or $49.1 million, over the same period in 2025.
The loss of this income created a gap between the two years being compared. Casino management had been a steady source of revenue before the agreement lapsed.
Paradise Entertainment’s profit last year included HK$148.8 million, or $19.1 million, tied to the discontinued casino management operation. Profit from continuing operations alone stood at HK$29 million, or $3.7 million.
This means the bulk of last year’s profit came from a business that no longer exists for the company. The current year’s results do not have that same contribution.
Together, the equipment sales decline and the end of casino management income explain most of the projected loss. Both factors reduced revenue compared to the prior year period.
Paradise Entertainment has not released its finalized results yet. The figures included in the profit warning remain estimates until the company publishes its interim statements.
The company plans to release its full unaudited results by the end of August 2026. Those figures will confirm whether the final loss matches the current projection.
