Paradise Entertainment (01180) has issued a profit warning, projecting a net loss of HK$82.6 million for the six months ending June 30, 2026, a sharp reversal from the HK$178 million profit reported in the same period of the previous year.

According to the company's announcement, the prior-year profit included HK$29 million from continuing operations and HK$149 million from discontinued operations. The board attributes the swing to a loss primarily to two key factors.

Firstly, as disclosed in a November 26, 2025 announcement, the group's service agreement to provide casino management services in Macau expired on December 2, 2025, and was not renewed, leading to the cessation of that business. Consequently, the group recorded no revenue from its Macau casino management services in the reporting period, compared to HK$383 million in revenue from that segment in the prior period.

Secondly, revenue from the sale and/or leasing of electronic gaming equipment and systems fell by HK$93.1 million, or 74.2%, year-over-year. This decline was particularly pronounced in Macau for the sale of live multi-game terminals and systems. The group's next-generation live multi-game platform, Black Coral, is expected to launch in the second half of 2026 or early 2027. The company believes customers may be delaying purchases in anticipation of the new version, which reduced sales of the current live multi-game platform during the reporting period.