PARADISE ENT (01180) issues profit warning, expecting a mid-term loss of HKD 82.6 million, turning from profit to loss year-on-year.

PARADISE ENT (01180) announced that the Group expects to record a loss of HK$82.6 million for the six months ending June 30, 2026 (the Reporting Period), compared to a profit of HK$178 million for the six months ending June 30, 2025 (the Previous Period), which included profits from continuing operations and discontinued operations of HK$29 million and HK$149 million, respectively. According to the current information, the Board believes that the turnaround from profit in the Previous Period to loss in the Reporting Period is mainly due to (i) as disclosed in the Company's announcement dated November 26, 2025, the relevant service agreement for the Group's provision of casino management services in Macau will expire on December 2, 2025, and will not be renewed, resulting in no recognition of revenue from the casino management services in Macau during the Reporting Period, whereas revenue of HK$383 million was recognized for that business in the Previous Period; and (ii) the Group's revenue from the sale and/or lease of electronic gaming equipment and systems decreased by HK$93.1 million or 74.2% compared to the Previous Period, particularly in the sales of live hybrid gaming machine terminals and systems in Macau. The Group's next-generation live hybrid gaming machine platform, Black Coral, is expected to be launched in the second half of 2026 or early 2027. The Company believes that customers may choose to delay purchases due to the anticipation of the new version of the live hybrid gaming machine, resulting in a decrease in sales of the existing live hybrid gaming machine platform during the Reporting Period.