US-listed gaming operator Entertaining Gaming Asia (EGA) has recovered from last year’s losses and recorded a profit during the second quarter of 2015.
Net income from April to June this year rose to $1.5 million, up from the loss of $200,000 recorded in the second quarter of 2014, according to a company statement.
Revenues for the quarter jumped by over 50 per cent, from $7.6 million compared to $4.9 million in the corresponding second quarter in 2014.
Along with sales of its gaming products, including poker chips and gaming plaques, the company attributed much of the increase to a boost in gaming operations at Cambodia’s largest casino NagaWorld, where, according to its 2014 annual report, EGA has 670 slot machines.
“Gaming products benefited from an attractive reorder pipeline from existing customers and our efforts to improve profitability while growth in gaming operations was largely due to strong performance at NagaWorld,” Clarence Chung, chairman and CEO of Entertainment Gaming Asia, was quoted as saying in the company statement.
According to the latest quarterly unaudited report from NagaCorp, the Hong Kong stock exchange-listed parent of NagaWorld, gross gaming revenue rose to $113.5 million in 2015’s first quarter from $76.9 million in the corresponding period last year.
Mass market revenues, made up largely of Southeast Asian clients, grew by 8 per cent to $47.9 million, while VIP earnings increased by 101 per cent to $65.5 million.
Ros Phirun, spokesman for the Ministry of Economy and Finance, attributes the boost in gaming revenues to NagaWorld’s increased marketing efforts into Asia.
“Naga normally does marketing in China, Malaysia, and to people all around the world,” he said.
“From my observations, I have noticed there are a lot more people from China frequenting the casino within the last quarter.”
Meanwhile, Cambodia’s long-awaited gaming law – which aims to double state revenues and bring the industry on par with international standards – should be finalised and ready for government approval early next year, Phirun added.
“The law has already gone though the technical level but it now has to go through the legal counsel in the Ministry of Finance. Next we he have to submit to the upper-ministry level,” he said.
“In the government meeting for government regulation, this law should be adopted within a few years.”
EGA has about 1,600 gaming machines throughout the Philippines and Cambodia.
The company suffered a net loss of $2.8 million last year, which included a loss of $325,000 when it sold its Dreamworld Pailin casino, located near the border of Thailand.
Contact PhnomPenh Post for full articlePost Media Co Ltd
The Elements Condominium, Level 7
Hun Sen Boulevard
Phum Tuol Roka III
Sangkat Chak Angre Krom, Khan Meanchey
12353 Phnom Penh
Tel: +855(0) 23 888 161 / 162
Fax: +855(0) 23 214 318