GGRAsia – Entertainment Gaming Asia’s revenue drops 5 pct in 2Q

Entertainment Gaming Asia’s revenue drops 5 pct in 2Q

Aug 07, 2014 Newsdesk Latest News, Rest of Asia, Top of the deck

Nasdaq-listed Entertainment Gaming Asia Inc, a company linked with Hong Kong-listed casino investor Melco International Development Ltd, reported second quarter revenue of US$4.9 million, down by 5 percent from US$5.2 million a year earlier. The fall was “due to a decline in gaming operations revenue partially offset by an increase in gaming products sales,” it said in a filing on Thursday.

Entertainment Gaming Asia is a gaming company focused on the emerging gaming markets of Asia. It operates slot machines on a participation basis and also supplies gaming chips and plaques to casinos.

The company reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$2.1 million in the second quarter, down from US$2.3 million in the prior year period.

Entertainment Gaming Asia posted a net loss of US$22,000 in the three months to June 30. It said the net loss included a net loss of US$239,000 from the discontinued Dreamworld Pailin operations. Excluding this item, the company would post net income from continuing operations of US$217,000, it added. This compared to a net loss of US$286,000 for the second quarter of 2013.

In June, Entertainment Gaming Asia announced it was selling its assets in Cambodia. The Cambodia-based unit, Dreamworld Leisure (Pailin) Ltd, owns Dreamworld Pailin, a casino with 26 gaming tables in the Pailin province of northwestern Cambodia. It also operates Dreamworld Poipet (pictured), a standalone slot hall in an existing casino in Poipet.

The transaction is expected to close in the “next few months”, Entertainment Gaming Asia said in Thursday’s statement.

“Gaming operations revenue comprised solely slot participation as the company ceased operations of its Dreamworld Pailin casino on June 1, 2014,” it added.

Gaming operations revenue for the quarter was US$4.4 million, dropping by 12 percent from a year ago.

“The decline was primarily due to lower average daily net win per unit from NagaWorld, which experienced higher jackpots in the second quarter of 2014, partially offset by improved revenue from Dreamworld Poipet,” it said.

NagaWorld, operated by NagaCorp Ltd, is Cambodia’s largest casino complex and the only in capital Phnom Pehn. On Wednesday, the casino operator had said revenue from electronic games fell by 6.4 percent in the second quarter of 2014 to US$41.2 million.

Entertainment Gaming Asia said revenue from gaming products was US$524,000 in the second quarter of 2014 compared to US$162,000 in the year ago period.

“We continue to selectively seek both slot participation and casino development projects in more established markets in Indo-China and other growing gaming markets in Asia, which offer the potential for greater operational scale and returns,” Clarence Chung, chief executive of Entertainment Gaming Asia, said in the statement.