GGRAsia – GPI narrows loss in second quarter

GPI narrows loss in second quarter

Aug 13, 2015 Newsdesk Industry Talk, Latest News, World

Casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) posted a net loss of US$141,000 for the second quarter of 2015, compared to a net loss of US$1.2 million in the same period in 2014.

The company said in a filing on Wednesday it had revenues of US$16.2 million for the three months to June 30, up 59 percent from the prior-year period. Sales in the Asia-Pacific region reached US$2.2 million, accounting for 13.8 percent of total sales in the period.

Macau-based GPI Asia distributes GPI’s casino currencies, playing cards, and table gaming accessories in the Asia-Pacific region.

“The increase in results for the three months ended June 30, 2015 compared to the same period in 2014 is primarily due to the additional business generated by the GemGroup acquisition,” the firm said in its latest filing.

GPI paid US$19.75 million for GemGroup Inc, a deal concluded in July last year. Gemaco Inc, a unit of GemGroup, is a manufacturer of playing cards, casino chips and table layouts.

On Wednesday, GPI said it had a backlog of signed orders worth US$15.6 million at the end of June – including US$9.1 million from GPI Asia.

GPI announced in May it had received a US$7.2-million order to supply gaming chips and plaques for a new casino in Macau, which it said it expects to deliver later this year.

“The increase in revenue from playing cards and other consumables accounted for about 50 percent of our total net sales for the [second] quarter, and provides a source of recurring revenue that is not dependent on new casino openings,” Greg Gronau, GPI president and chief executive, said in a statement accompanying the results.

“We do anticipate several large casino openings in 2016 and beyond and believe we are well positioned to compete for that business,” Mr Gronau added.