Gaming Partners International Corp (GPI) – a supplier of casino currency and table gaming equipment – reported net income of US$700,000 for the fourth quarter of 2016 on revenues of US$23.1 million.
The results compared with net income of US$3.4 million on US$23.5 million in revenue for the fourth quarter of 2015.
For full year 2016, the company posted net income of US$5.2 million on revenues of US$82.1 million. That compared to net income of US$6.9 million and revenues of US$78.2 million for 2015.
“This increase in [annual] revenues is primarily due to… the casino currency, the playing cards and the RFID [radio frequency identification] solutions product lines, offset by a [revenue] decrease in the table layouts product lines,” the Nasdaq-listed firm stated in its 2016 results report filed with the U.S. Securities and Exchange Commission.
It added: “The 2016 net income includes a US$0.4 million impairment loss on intangible assets while the 2015 net income includes a gain of US$1.3 million on the sale of a building and land we owned in Las Vegas, Nevada.” The latter was a reference to GPI’s old headquarters, sold by the company in 2015.
Last year, GPI’s Asia-Pacific operations accounted for 26.0 percent of the company’s overall revenue. The company reported revenue of US$21.4 million for the Asia-Pacific region, an increase of 0.1 percent in year-on-year terms.
At the end of last year, the firm’s Asian subsidiary – Gaming Partners International Asia Ltd – had signed orders worth US$8.1 million for 2017. At the end of 2015, the firm’s backlog of signed orders for the following 12 months was US$2.2 million.
In May 2016 GPI acquired the assets of Dolphin Products Ltd, a subsidiary of gaming supplier Entertainment Gaming Asia Inc focused on manufacturing and distributing gaming chips, gaming plaques and related products to casinos in Asia and Australia. The total cost of the acquisition was US$7.3 million, of which US$2.2 million will be paid over the next two years.
Commenting on the deal, GPI said: “In the fourth quarter of 2016 we shipped our first order of Dolphin chips. With the acquisition of assets from Dolphin, we have strengthened our position in the growing Asia market.”
Looking into the future, the company added: “While there are a number of casinos scheduled to open in 2017 and 2018 in Macau, continuing uncertainty arising from regulators’ decisions on the timing of openings and the number of tables allotted to each new casino will impact both the amount of revenue we recognise and the timing of revenue recognition.”
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Direct taxes on gaming collected by the Macau government in full calendar year 2018