Casino and machine games operator Entertainment Gaming Asia reported a 43.5% drop in pre-tax earnings in the first quarter as trading was down across all the company’s segments.
Revenues for Nasdaq-listed EGT, as it’s known, were off 29% to $4.9 million compared to the first quarter of 2013. Leading the declines was gaming operations, which comprises about 84% of EGT’s business and dropped 25% in the quarter. Slot operations was down 12%, mainly on lower average daily win from the company’s NagaWorld and Philippines slots and EGMs, slightly offset by incremental revenue from the company’s Dreamworld Poipet casino, which opened in Cambodia in May 2013.
Casino operations, which consists of Cambodia’s Dreamworld Pailin, contributed $216,000, down from $1.1 million in Q1 2013, which the company attributed to a decision to stop using tour group promoters and to further reduce costs by leasing its table games.
Revenue from gaming products was down 43% to $811,000 on lower sales to existing customers.
The company posted adjusted EBITDA of US$862,000, down from $1.9 million in Q1 2013, and a net loss of $1 million, or three cents per share. The prior year loss was $2.2 million, but that was due largely to discontinued operations related to the March 2013 sale of the non-gaming businesses of its Dolphin Products subsidiary. Excluding this, the loss from continuing operations in Q1 2013 was $329,000, or one cent per share.
EGT is 38% owned by Lawrence Ho’s Melco Group through a Hong Kong-listed subsidiary, EGT Entertainment Holding. Mr Ho is co-chairman of Macau casino operator Melco Crown Entertainment, of which Melco Group owns 34%
