Palasino Holdings (2536) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 7% YoY to HK$564.3m, supported by slot machine growth and recovery in hotel and catering operations.

• Listed on 26 March 2024; operations comprise three Czech casinos and hotels in Germany and Austria.

• Profitability reflected listing and reorganisation costs; adjusted net profit was HK$41.0m and Adjusted EBITDA was HK$85.5m.

Financial highlights

• Revenue was HK$564.3m vs HK$529.0m; after gaming tax, net revenue was HK$422.8m vs HK$395.9m, up 7%.

• Profit for the year fell to HK$9.5m from HK$44.2m; profit before tax was HK$28.2m vs HK$61.6m.

• Adjusted net profit, excluding HK$23.5m listing expenses and HK$7.9m reorganisation tax, was HK$41.0m vs HK$44.2m.

• Adjusted EBITDA was HK$85.5m vs HK$85.4m; excluding online gaming revenue and expenses, it was HK$106m vs HK$99m.

• Basic and diluted EPS were HK1.19 cents; FY2023 basic EPS was HK6.18 cents.

Outlook and guidance

• FY2025 outlook anticipates challenging conditions from inflation, high interest rates, the Ukraine-Russia war and higher gaming tax.

• Plans include refurbishing Palasino Savannah Resort and Palasino Wullowitz, adding slot machines and pursuing casino acquisitions or new licences in Central Europe and other markets.

• Online gaming expansion is planned under the Malta licence; an application for a Czech online licence is planned for FY2025, alongside exploration of B2B opportunities.