Asia – Entertainment Gaming Asia sees revenue rise 63 per cent in Q4By Phil - 12 March 2015
Entertainment Gaming Asia’s fourth quarter of 2014 consolidated revenue rose to $8.3m, an increase of 63 per cent compared to $5.1m in the fourth quarter of 2013 due to higher gaming products sales partially offset by lower gaming operations revenue.
However it recorded a net loss from continuing operations of $1.6m for the fourth quarter and $2.5m for the 2014 fiscal year.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, said: “We are focused on improving our operating performance and securing new projects that will drive long-term growth and earnings visibility for the Company. We believe we have significantly improved our positioning to secure new gaming projects following the successful completion of our recent rights offering. With a cash position of approximately $20m as of February 28, 2015 and as an indirect, majority-owned subsidiary of Melco International Development Limited, a leader in Asian gaming, we believe we have greatly enhanced our financial flexibility and deepened our credibility in our markets. We are actively seeking new projects and believe that we are better positioned than ever to capitalize on the opportunities in emerging gaming markets of Southeast Asia.”
Gaming operations revenue was $4.1m for the fourth quarter of 2014, a decrease of seven per cent compared to $4.4m in the fourth quarter of 2013 due to declines in both the Cambodia and Philippines operations.
Cambodia average net win per unit was up modestly to $129 for the fourth quarter of 2014 compared to $127 in the prior year period primarily due to improved performance at NagaWorld. NagaWorld average daily net win per unit increased to $197 for the fourth quarter of 2014 compared to $185 in the prior year period primarily due to an increase in VIP player traffic and machine hold percentages. Philippines average daily net win per unit declined to $65 for the fourth quarter of 2014 compared to $76 in the prior year period primarily due to increased competition from new integrated casino resorts in Manila.
Revenue from gaming products was $4.2m for the fourth quarter of 2014 compared to $729,000 in the fourth quarter of 2013. The fourth quarter of 2014 benefited from the delivery of two significant gaming chip and plaque orders from the Philippines totalling $4m, which included an initial order for a new casino opening and a reorder from an existing casino customer.
Mr. Chung added: “We believe that our gaming products division has the potential to be a meaningful contributor to future earnings and that our efforts to improve performance of this division are beginning to pay off in 2015. We recently completed a plant expansion and are implementing efforts to enhance and further automate certain production processes. We believe that these efforts better positions us to secure large new orders and to improve the earnings potential for this division. For the first quarter of 2015, we have a confirmed order pipeline of $5.4m, of which we have delivered $3.8 million in sales as of February 28, 2015 with a gross profit. Also, we are in negotiations to secure a large order for a new casino opening in Macau later this year.”