GGRAsia – Entertainment Gaming Asia posts US$1.4 mln profit in 3Q

Entertainment Gaming Asia posts US$1.4 mln profit in 3Q

Nov 10, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck

Nasdaq-listed Entertainment Gaming Asia Inc posted net income of US$1.4 million for the third quarter of 2015, compared to a net loss of US$261,000 a year earlier.

The firm reported third quarter revenue of US$8.3 million, up by 88.6 percent from the prior-year period. Such growth was “due to increases in both the gaming operations and gaming products business divisions,” it said in a filing on Monday.

Entertainment Gaming Asia is engaged in the leasing of electronic gaming machines on a revenue sharing basis to the gaming industry in Cambodia and the Philippines, and the development and operation of gaming venues in Asia under its ‘Dreamworld’ brand. It also manufactures and sells gaming chips and plaques under the ‘Dolphin’ brand (pictured).

The company said revenue from its gaming operations rose 13 percent year-on-year to US$4.5 million in the three months to September 30. The increase was “primarily due to improvements in the Cambodia operations partially offset by a decline in the Philippines operations,” it added.

Revenue from gaming products grew to US$3.8 million in the third quarter of 2015, compared to US$437,000 a year earlier. The firm said the increase was a result of higher product sales, including a US$2.2 million order for a new casino opening in Macau.

Entertainment Gaming Asia is a subsidiary of Hong Kong-listed Melco International Development Ltd, chaired by Lawrence Ho Yau Lung. Melco International is one of the two controlling shareholders of Melco Crown Entertainment Ltd. The latter firm opened on October 27 its new US$3.2-billion Studio City project in Macau.

In Monday’s filing, Entertainment Gaming Asia said its third quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) doubled from a year earlier to US$3.4 million.

“The primary drivers of our performance in the quarter and year-to-date were the significant improvements in gaming products sales and gross margin as well as the growth in gaming operations revenue,” Clarence Chung Yuk Man, chairman and chief executive of Entertainment Gaming Asia, said in a statement.

“With an attractive fourth quarter order pipeline, the gaming products division is on target to achieve record performance of over US$13 million in revenue for 2015,” he said, cautioning that the firm expects “to experience sales fluctuations due to the natural uneven order flow for this business driven by the timing of orders for new casino openings”.