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

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided

  • Covid rattles Phnom Penh’s retail landscape through H1

    The Covid-19 pandemic has rocked the retail landscape in Phnom Penh, with anxiety around infection risk keeping the masses away from shopping malls and driving retail consumption down by nearly five per cent in the first half of this year, compared to July-December 2020, according to