Asia helps casino currency firm GPI to profit in 1Q
Gaming Partners International Corp, a maker of casino currency and table game equipment, swung to a net profit of US$932,000 for the three months to March 31, compared to a net loss of US$80,000 in the prior-year period.
First-quarter revenues were US$18.9 million, an increase of US$2.8 million, or 17.5 percent compared to revenues of US$16.1 million for the same period in 2016.
The firm said that improvement was “primarily due to an increase in casino currency sales in the Americas and in Asia,” an increase in table accessories and furniture sales in the Americas, and an increase in sales of radio frequency identification (RFID) technology for table games in Asia.
For the three months ended March 31, 2017, cost of revenues was US$13.1 million, an increase of US$1.0 million, or 8.0 percent, when compared to the same period in 2016.
As a percentage of revenues, cost of revenues decreased to 69.2 percent in first quarter 2017 compared to 75.3 percent in 2016.
“While we had a strong [order] backlog in Asia as of March 31, 2017, and anticipate to win new business in the Asia market, continuing uncertainty arising from regulators’ decisions on the timing of casino opening dates and the number of tables allotted to each new casino will impact both the amount of revenue we may recognise and the timing of revenue recognition,” said the firm.
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