Pan-Asian gaming company Entertainment Gaming Asia Inc (EGA) will actively pursue new business ventures, including developing an online social casino platform, to help offset short-term revenue losses, the company said in a filing yesterday.
The company, which leases electronic gaming machines (EGMs) to casinos in Cambodia and the Philippines and operates gaming properties under its Dreamworld brand, reported revenue of $2.3 million on gaming operations in the second quarter of 2016, down 54 per cent year-on-year.
It attributed declining revenue to lower takes on 670 of its EGMs under a revised lease agreement with NagaWorld in Phnom Penh – a deal it exited in June by selling the units – and from discontinued gaming products operations following the sale of the business unit.
The sales, however, have provided about $10 million in cash to pursue new business ventures, according to EGA chairman and CEO Clarence Chung.
He said efforts to develop an online social gaming platform were progressing and the firm plans to begin product testing in the third quarter of 2016.
“We have developed this free-to-play, mobile, social games app for the pan-Asian market and intend to monetise it through the in-game-sale of virtual coins that allow players to extend play time or accelerate their progress,” he said.