EGT swings to Q1 loss

Entertainment Gaming Asia (EGT), a Hong Kong-listed gaming company, swung to a loss in Q1 on lower revenue mainly due to a decreased contribution from its gaming products business, which the company is exiting.

The company reported a net loss of $1.5 million, or $0.10 per share, compared to net income of $570,000, or $0.04 per share for the first quarter of 2015. Analyst estimates weren’t available.

Consolidated revenue fell 38 percent to $5.2 million.

Gaming operations revenue was $3.9 million for the first quarter of 2016, a decrease of 4 percent compared to $4.0 million in the first quarter of 2015. It was made up of $3.4 million from slot participation operations and $457,000 from fixed lease operations, with gains in Cambodia offsetting losses in the Philippines.

Philippines average daily net win per unit was $60 for the first quarter of 2016, a decrease of 12 percent  compared to $68 in the prior year period. The decrease was primarily a result of lower player traffic due to increased competition from new integrated casino resorts in Manila.

Cambodia average daily net win per unit was $142 for the first quarter of 2016, an increase of 11 percent compared to $128 in the prior year period primarily due to improved participation performance from NagaWorld and Thansur Bokor.  NagaWorld average daily net win per unit increased to $232 for January and February of 2016 compared to $198 in the first quarter of 2015 mainly as a result of an increase in VIP player traffic.

Revenue from gaming products was $1.3 million for the first quarter of 2016 compared to $4.3 million in the first quarter of 2015.

“The 2016 year is one of transition for the company,” said CEO Clarence Chung. “In April, we made the strategic decision to sell our Dolphin assets and exit the gaming products business. The transaction closed on May 11, 2016. We believe this strategic move will enable us to focus our resources on new projects that will drive long-term growth for the Company. We are actively seeking and/or pursuing opportunities to enter new markets. This includes, but is not limited to, efforts to develop an online social casino platform.”