Logo of Phnom Penh Post newspaper Phnom Penh Post - Gaming outfit reports loss

Gaming outfit reports loss

Dreamworld Pailin casino in Pailin province
Dreamworld Pailin casino in Pailin province this year. Entertainment Gaming Asia said the casino’s performance was weak in the second quarter. PHOTO SUPPLIED

Gaming outfit reports loss

Entertainment Gaming Asia Inc (EGA), a NASDAQ-listed company that supplies NagaWorld Casino with slot machines and operates casinos in Poipet town and Pailin province, reported a net loss of $385,000 from continuing operations in the second quarter of 2013, according to a statement from the company.

“Quarterly performance benefited from strong contribution from our operations in NagaWorld,” Clarence Chung, chairman and chief executive officer of Entertainment Gaming Asia said on August 8. “However, overall results were negatively impacted by lower revenue and high non-recurring costs for the gaming products division primarily due to the relocation of the manufacturing facilities from Australia to Hong Kong during the quarter and a gross margin loss for Dreamworld Pailin.”

Dreamworld Pailin, which opened in May of 2012 in the eponymous northwest province on the Cambodia-Thai border, saw revenues decline to $907,000 in the second quarter from $1.1 million in the first quarter.

The company attributed this to a decline in “player traffic levels”, and is unfurling a revised strategy that focuses on VIP junkets and fewer tables.

“Dreamworld Pailin did not perform up to our expectations for the second quarter,” Chung said in a conference call with investors on August 8, adding that the casino’s financial performance “has been slow”.

Aside from drawing more VIPs, EGA will reduce the number of playing tables from 26 to about 16 and will replace them with electronic gaming tables tailored to individual “mass market” gamblers.

The $7.5 million Dreamworld Poipet in Banteay Meanchey province that opened in May made small contributions to revenues, according to Chung.

“With eight existing casinos in operation, Poipet is an established and growing regional gaming market,” he said. “Given Dreamworld Poipet’s prominent location and targeted marketing program, we are focused on ramping up these operations”.

NagaWorld slot machine profits provided the company with its greatest revenue from Cambodian gaming, contributing $3.7 million in revenue and an average of $256 per machine per day for the second quarter.

EGA attributes a chunk of its losses to the disruption of gaming product manufacturing. A chips and plaque manufacturing facility moved from Australia to Hong Kong during the second quarter of 2013, contributing to a decline.

EGA also has casino operations in the Philippines and has plans to open a Dreamworld casino in Kampot.

Total revenue before operating costs for the second quarter of 2013 was $5.8 million, a decrease of 5 per cent compared with $6.2 million in the second quarter of 2012.

Senior vice-president Traci Mangini did not immediately respond to an email seeking comment on the decrease in Dreamworld Pailin’s player traffic and the future of the casino in Kampot, which is supposed to open some time in late 2013.

An April presentation posted on EGA’s website details the company’s plans for Dreamworld Kampot to be built near the Cambodia-Vietnam border. With an initial investment of about $1.2 million funded by EGA, construction was supposed to begin in the second half of this year.

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration