GGRAsia – GPI posts US$2.1 mln 2Q profit on higher Asia sales

GPI posts US$2.1 mln 2Q profit on higher Asia sales

Aug 12, 2016 Newsdesk Industry Talk, Latest News, Top of the deck

Casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) posted net income of US$2.1 million for the second quarter of 2016, compared to a net loss of US$141,000 in the same period in 2015.

GPI’s revenue for the period between April and June was US$20.3 million, up by 25.2 percent in year-on-year terms, the Nasdaq-listed company said in a statement issued on Thursday.

The firm added that the improved net income was primarily due to “an increase in sales of RFID solutions in Asia” and “an increase in casino currency sales in the United States”.

Revenue from Asia Pacific was US$2.6 million in the second quarter of 2016, an increase of 16.2 percent from the prior-year period.

GPI posted net income of US$2.0 million for the first half of 2016, up by 10.0 percent in year-on-year terms.

In May the firm acquired the assets of Dolphin Products Ltd, a subsidiary of gaming supplier Entertainment Gaming Asia Inc focused on manufacturing and distributing gaming chips, gaming plaques and related products to casinos in Asia and Australia.

“Our recent acquisition of Dolphin’s gaming currency assets will help further strengthen our market position in Asia. We have a backlog of US$13.1 million in orders from the Asia market, up from US$9.1 million at the same time last year,” said Gregory Gronau, president and chief executive of GPI, in a statement accompanying the firm’s results announcement.

GPI however noted in Thursday’s filing: “While our backlog in Asia is strong with a number of casinos slated to open this year and in 2017, there is some uncertainty arising from Macau regulators’ decisions on the timing of casino openings and the number of tables allotted to each new casino.”

The firm added that the expansion of its manufacturing facility at Blue Springs, Missouri, in the United States, should be completed “before the end of the third quarter of 2016 at a fixed price of US$2.2 million”.