GGRAsia – Global Cash Access posts 30-pct profit drop for 2Q

Global Cash Access posts 30-pct profit drop for 2Q

Aug 06, 2014 Newsdesk Industry Talk, Latest News

U.S.-based Global Cash Access Holdings Inc posted a drop in net income of 30.3 percent for the second quarter of 2014 compared with one year ago.

The New York-listed firm – also known as GCA and which supplies cash access products and related services to the gaming industry – recorded profit of US$4.7 million for the three months ended June 30.

Cash earnings per share decreased by US$0.01, or 5 percent, to US$0.20. The company’s total revenues dropped by 2.8 percent to US$144.9 million.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) and non-cash compensation decreased by 7 percent to US$17.7 million for the second quarter as compared to the same period last year.

Global Cash Access, which has a subsidiary in Macau, completed the acquisition of U.S.-based NEWave Inc in April. NEWave is a supplier of compliance, audit and data efficiency software to the gaming industry.

Global Cash Access’s 2014 guidance remains unchanged in that cash earnings per share will be between US$0.87 and US$0.91 (on approximately 67.1 million diluted shares) and adjusted EBITDA will be between US$76.0 million and US$79.0 million, the company stated.