Logo of Phnom Penh Post newspaper Phnom Penh Post - Gaming firm back in the black

Gaming firm back in the black

Dreamworld Pailin casino in Pailin province in mid-2013
Dreamworld Pailin casino in Pailin province in mid-2013. Dreamworld has recorded an increase in net income by more than $500,000 for the first quarter of this year. Photo supplied

Gaming firm back in the black

Gaming operator Entertainment Gaming Asia (EGA) has turned a profit after two years of losses partly due to an unsuccessful casino venture in Pailin, according to the NASDAQ-listed firm’s first-quarter results.

Net income rose to $570,000 for 2015’s first quarter, up from a $1.03 million loss for the same period last year. Total revenues stood at $8.3 million, a 76 per cent increase from $4.7 million last year.

The firm chalked its results up to increasing reorders for gaming products, including poker chips and gaming plaques, and increased VIP traffic to NagaWorld, where it operates 670 electronic gaming machines.

“Gaming products benefited from an attractive reorder pipeline from existing customers and our continuing efforts to improve profitability while growth in gaming operations was largely due to solid performance from NagaWorld,” CEO Clarence Chung said in a statement.

Growth in EGA’s Cambodian gaming operations increased 6 per cent compared to 2014’s first quarter, making up for an 8 per cent loss in revenue from the Philippines, where two casinos have opened since March 2013 in Manila.

Gaming analyst Michael Ting of CIMB said NagaWorld would likely see continuing VIP revenue growth, although they were starting from a “low base”.

“As time goes on, Naga should see a steady increase in China-based VIP customers. Again from a low base.”

But revenues from EGA’s 1,600 slot machines across Cambodia and the Philippines did not contribute significantly to its positive result, nudging from $3.9 million in 2014’s first quarter to $4.01 million this year.

Instead, most of EGA’s increased revenue was due to reorders of physical gaming products, which more than quadrupled to $4.2 million in 2015’s first quarter, while the firm has since dropped its unprofitable Dreamworld Pailin venture.

EGA sold the casino for $500,000 in June of 2014 after an initial investment of $2.5 million when it opened in May of 2012.

“The property’s performance was negatively impacted by an insufficient level of player traffic and the high costs associated with acquiring a quality player base in this market,” the firm wrote in its 2014 annual report.

A net loss of $157,000 was recorded in the first quarter of 2014 from “discontinued operations related to Dreamworld Pailin”. No further losses from the ill-fated venture were recorded in 2015.

Despite Dreamworld’s loss, the company said it remained on the lookout for further expansion opportunities.

“We are actively seeking new projects that would further enhance our existing business lines and provide the opportunity to add new ones”, Chung said in a statement.

EGA could not be reached for comment.

MOST VIEWED

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • No ‘Crown Prince’ exists to buy France football club: ministry

    The Ministry of the Royal Palace has denied media reports that a Cambodian “Crown Prince” had purchased the AS Saint Etienne football club of France’s top-flight LIGUE 1 at the cost of €100 million ($117 million). In a press statement on September 19, the ministry stressed that Cambodia