• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Ent Gaming Asia posts 3Q loss, eyes new projects

Nov 11, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck  


Ent Gaming Asia posts 3Q loss, eyes new projects

Nasdaq-listed Entertainment Gaming Asia Inc on Thursday reported third quarter revenue of US$690,000, down from US$4.5 million a year earlier. The firm posted a net loss of US$744,000 for the three months to September 30, compared to net income of US$1.4 million in the prior-year period.

“The decrease [in revenue] was primarily due to the expiration of the company’s electronic gaming machine (EGM) participation agreement with NagaWorld on February 29, 2016,” said Entertainment Gaming Asia in the filing.

Entertainment Gaming Asia’s business activities include leasing EGMs to the gaming industry in Asia. The firm had amended earlier this year the lease agreement with NagaWorld to a fixed fee compared to the prior revenue sharing arrangement. But in July, Entertainment Gaming Asia announced it was selling all of its EGMs placed in NagaWorld to a third-party for a total consideration of US$2.5 million.

Until recently, the company also manufactured and distributed gaming chips, gaming plaques and related products under the Dolphin brand. In May the firm sold that business to casino currency and table games equipment firm Gaming Partners International Corp.

In Thursday’s filing, Entertainment Gaming Asia said it sold in October all of its 71 EGMs in Thansur Bokor Highland Resort, in Cambodia, for cash proceeds of US$250,000. The firm still leases EGMs to two properties in the Philippines and to one venue in Cambodia.

“While our reduced base of operations will have a negative impact on our near-term earnings, these transactions provide us a total of approximately US$9.4 million in cash proceeds, excluding US$765,000 in expense reimbursements for severance costs and factory lease payments and the potential for earn outs on certain gaming chip and plaque sales related to the now discontinued gaming products business,” said Clarence Chung Yuk Man (pictured), chairman and chief executive of Entertainment Gaming Asia, in a statement accompanying the firm’s results announcement.

He added: “To date, we have received US$7.3 million of the sale proceeds and have cash resources of approximately US$35 million which, we believe, enhances our ability to pursue and execute on new projects.”

The company had previously announced it would focus on developing an online social casino platform for the Asian market. “We are testing the platform in certain markets to assess its potential as a provider to long-term earnings,” said Mr Chung in Thursday’s statement.

Entertainment Gaming Asia said it recorded higher operating expenses in the third quarter, related to the new social gaming operations. The firm said its selling, general and administrative costs, as well as research and development expenses, increased by 36.4 percent year-on-year to US$1.5 million.

Mr Chung said the company is now eyeing new projects in different business segments.

“We are actively pursuing projects that we believe will provide long-term growth potential for the company. These potential projects are in new businesses, such as the film [industry] and related businesses, for the company and would provide us a new strategic direction,” stated the firm’s chairman.

Casino investor Melco International Development Ltd – a company controlled by Lawrence Ho Yau Lung – is the controlling shareholder of Entertainment Gaming Asia.


  • tweet
Related articles
  • Star Vegas casino recovers after vendor breaches: Donaco
    Star Vegas casino recovers after vendor...

    Apr 17, 2018  

  • Philippine casino proxy betting is AML loophole: U.S.
    Philippine casino proxy betting is AML...

    Apr 11, 2018  

More news
  • Macau police detain one local over crypto coin launch
    Macau police detain one local over...

    Apr 20, 2018  

  • Singapore govt touts gaming oversight consolidation
    Singapore govt touts gaming oversight...

    Apr 20, 2018  


Latest News

Macau police detain one local over crypto coin launch

Macau police detain one local over crypto coin launch

Apr 20, 2018  

Macau’s Judiciary Police said on Friday that a male Macau resident had been detained for alleged involvement in giving false information designed to attract public subscribers to a cryptocurrency...
Read More
Singapore govt touts gaming oversight consolidation

Singapore govt touts gaming oversight consolidation

Apr 20, 2018  

Plenty of likely suitors for Wynn Macau Ltd: Telsey

Plenty of likely suitors for Wynn Macau Ltd: Telsey

Apr 20, 2018  

Slideshow

Macau casinos celebrate Chinese New Year

Interviews

  • BMM prepped for Macau EGM regulation update: White
    BMM prepped for Macau EGM regulation update: White

    Jan 04, 2018  

    BMM Testlabs “ticks all the boxes” with regard to its...
  • Japan, Cambodia, Vietnam casino biz to watch: Klebanow
    Japan, Cambodia, Vietnam casino biz to watch: Klebanow

    Dec 08, 2017  

    The regulated casino industry is well versed in dealing...
  • Cloud services, e-Sports highlights of MGS 2017: Chun
    Cloud services, e-Sports highlights of MGS 2017: Chun

    Oct 23, 2017  

    The presence of some of the leading cloud computing...
  • Crunch time for Tokyo casino option: Caesars exec
    Crunch time for Tokyo casino option: Caesars exec

    Jul 11, 2017  

    The Tokyo local election setback for Japan’s governing...
  • Suncity bets on Vietnam, resurgent Macau VIP: Andrew Lo
    Suncity bets on Vietnam, resurgent Macau VIP: Andrew Lo

    Jul 06, 2017  

    A multibillion U.S. dollar casino project on Vietnam’s...

Pick of the Day

”We do not believe that reopening the advance notice nomination deadline [for board directors] is appropriate or justified”

Daniel Boone Wayson

Chairman of the Wynn Resorts board of directors



Most Popular

  • Plenty of likely suitors for Wynn Macau Ltd: TelseyPlenty of likely suitors for Wynn Macau Ltd: Telsey April 20, 2018
  • Boracay casino scheme officially intact: PagcorBoracay casino scheme officially intact: Pagcor April 20, 2018
  • Singapore govt touts gaming oversight consolidationSingapore govt touts gaming oversight consolidation April 20, 2018

Copyright 2017 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us