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Entertainment Gaming Asia reports Q1 2013 results and provides market update10 May 2013HONG KONG -- (PRESS RELEASE) -- Entertainment Gaming Asia Inc. (EGT) (“Entertainment Gaming Asia” or “the Company”), a leading gaming company focused on emerging gaming markets in Pan-Asia, today reported operating results for the first quarter ended March 31, 2013 and reviewed recent corporate progress. Highlights: Total consolidated revenue of $6.7 million for the first quarter of 2013 Total revenue from gaming operations of $5.3 million for the first quarter of 2013 Average consolidated win per unit per day (WUD) for the slot operations of $139 for the first quarter of 2013 Dreamworld Pailin, the Company’s first casino development project which opened in May 2012, contributed $1.1 million to gaming revenue for the first quarter of 2013 Gaming chips and plaques sales of $1.4 million for the first quarter of 2013 Adjusted EBITDA (earnings from continuing operations before interest, taxes, depreciation, amortization and non-cash charges) of $1.9 million for the first quarter of 2013 Cash balance of $4.5 million as of March 31, 2013 Zero debt as of March 31, 2013 Company is preparing to implement a junket program intended to increase premium and VIP player traffic at Dreamworld Pailin Grand opening of Dreamworld Poipet, a slot hall developed by the Company in an established gaming market near the Thailand border, held on May 9, 2013 Successful divestiture of the legacy non-gaming products business New Dolphin gaming chips and plaques manufacturing plant in Hong Kong is operational with attractive near-term order pipeline Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “Our consolidated revenue was up 22% for the first quarter of 2013 compared to the prior year period driven by significantly higher sales of gaming chips and plaques and incremental revenue from Dreamworld Pailin. “Our gaming chips and plaques benefited from strong reorder flow due to our growing customer base. We incurred high labor costs in Australia for these operations during the quarter as we accelerated the fulfillment of existing orders to expedite the relocation of the manufacturing plant from Australia to Hong Kong to accommodate our near-term order pipeline of over $1.0 million. Dreamworld Pailin contributed $1.1 million revenue in the quarter. While Dreamworld Pailin revenue was down slightly from the prior sequential quarter, we continue to refine our marketing programs and believe that we are making progress toward improving the quality of the player base. “Top-line gains were partially offset by lower slot revenue, primarily from our operations at Nagaworld, compared to the prior year period due to lower player traffic as a result of both the subdued atmosphere during the mourning period for the deceased King of Cambodia and the NagaWorld employee strike. Average net wins for these operations declined to $217 per machine for the quarter. However, net wins for our operations at NagaWorld have since climbed to $276 per machine for the month of April 2013. “We made great progress during the first quarter and to-date in further refining our business operations. We sold a non-core legacy business, opened our new Dreamworld Poipet property, took steps to implement our junket program to further increase high-quality player traffic at Dreamworld Pailin and completed the relocation of our gaming chips and plaques operations to a high-security, lower-cost plant in Hong Kong. “With solid recurring cash flow anticipated from our business divisions and planned capital expenditures largely concentrated early in the year, we are focused on building our resources in preparation for new potential growth opportunities.” |