Palasino Holdings (2536) H1 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 1% YoY to HK$282.1m; profit for the period was HK$15.7m versus HK$17.1m.

• Gaming generated 70% of revenue; slot-machine additions and stronger hotel rates supported growth.

• Adjusted EBITDA fell to HK$30.4m from HK$52.2m; excluding online gaming results and FX gains or losses, it was HK$43m versus HK$52m.

Financial highlights

• Gaming revenue rose 1% to HK$196.1m; hotel, catering and related services revenue was HK$85.5m.

• Gaming tax increased 6% to HK$71.7m; net revenue after gaming tax was HK$210.4m versus HK$210.9m.

• Profit before tax fell to HK$21.9m from HK$26.9m; income tax expense was HK$6.2m versus HK$9.8m.

• Basic EPS was HK1.95 cents versus HK2.15 cents; operating cash flow was HK$3.2m versus HK$20.9m.

• Other income rose to HK$6.8m from HK$2.9m, including reversal of a HK$2.5m real estate transfer-tax provision.

Outlook and guidance

• FY2025/26 macro conditions are expected to remain challenging; easing inflation and interest rates are positive trends, while geopolitical tensions may affect results.

• The higher Czech gaming tax rate is expected to have its full impact on profitability in H2 FY2025.

• Preparations continue for a fourth Czech casino in Mikulov, targeted to open in H1 FY2026.

• Plans include slot-machine expansion, rejuvenating casino and resort facilities, and pursuing opportunities in Central Europe and other markets.