GGRAsia – GPI posts bigger 2Q loss y-o-y

GPI posts bigger 2Q loss y-o-y

Aug 12, 2014 Newsdesk Industry Talk, Latest News

U.S.-based casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) recorded a net loss of US$1.2 million for the second quarter of 2014, compared to a net loss of US$0.1 million a year earlier.

The Nasdaq-listed company had revenues of US$10.2 million during the second quarter, down by 28 percent in year-on-year terms, GPI said in a filing on Tuesday. Around US$2.7 million came from the Asia Pacific region, a drop of 45 percent.

The decrease in overall revenues was mainly due to a reduction in worldwide casino currency sales, caused by the lack of openings and expansions, the firm explained.

“We do not anticipate that we will benefit from any casino openings in the remainder of 2014,” president and chief executive Greg Gronau said.

GPI in May announced it had received a large order to supply casino currency to an undisclosed casino in Macau.

“The order includes nearly 900,000 chips and over 137,000 plaques from the company’s Bourgogne et Grasset and Bud Jones brands totalling just under US$6.4 million of revenue which should be recognised in the remainder of 2014,” Mr Gronau said.

He also commented on the US$19.75-million acquisition of GemGroup Inc by GPI, concluded in July.

“The acquisition of the gaming assets of GemGroup will add the Gemaco brand playing cards and table layouts to our domestic product portfolio and increase our U.S. market share in both products,” Mr Gronau said. “It also adds the manufacturing and sale of layouts to our Asia Pacific product offerings.”