Lower casino currency sales and higher selling and administrative expenses saw revenues plunge at Gaming Partners International for both the fourth quarter and the full year.
For the full year GPI, a provider of casino currency and table gaming equipment, saw net income slide to $1.2m, from $6.1m for the year ended 2012
Fourth quarter comparisons saw net income of $0.6m, compared to $1.7m for the fourth quarter of 2012.
Revenues for the fourth quarter were down to $13.7m from $17.5m in the fourth quarter of 2012. The primary reason for the decrease in revenues was a decrease in casino currency sales in the United States and in the Asia-Pacific region.
“Our results for both the quarter and the year are disappointing,” commented Greg Gronau, GPIC President and Chief Executive Officer. “While the smaller number of casino openings has certainly hurt, efforts to better balance production, develop and obtain regulatory approval for new product offerings have not progressed as quickly as we anticipated. On the positive side, we have increased revenues from sales of RFID solutions and have increased market share in cards and other consumables, a source of recurring revenue not contingent on new casino openings.”
For the full year 2013, revenues reached $56.2m compared to revenues of $62.9m in 2012. Gross profit for the year 2013 was $17.6m, or 31 per cent of revenues, compared to $22.5m, or 36 per cent of revenues, in the same period of the prior year. The reason for the decrease in revenues in 2013 compared to 2012, was primarily related to fewer casino openings/expansions in 2013 compared to 2012.