Entertainment Gaming Asia suffers Q1 revenue blow
Asian gaming operator Entertainment Gaming Asia has cited the performance of its Dreamworld Palin Casino land-based operation in Cambodia as the main reason for a year-on-year drop in revenue over the three months through to March 31, 2014.
The company reported that consolidated revenue totalled $4.9 million in the first quarter, a drop of 29% on the $6.9 million it achieved in the corresponding period last year.
Gaming operations, which comprised slot and casino operations, was responsible for $4.1 million of this total revenue, which is down 25% from the $5.5 million it contributed in the same period in 2013.
Entertainment Gaming Asia cited the performance of its Dreamworld Palin Casino as the main reason for a drop in revenue. The Dreamworld Palin Casino contributed just $216,000 to total revenue, significantly less than the $1.1 million it generated last year.
As a result of the drop in total revenue, Entertainment Gaming Asia was only able to report earnings before interest, tax, depreciation and amortisation of $862,000 in the quarter, down from $1.9 million in Q1 of 2013.
Net loss also increased from a negative of $1 million last year to a loss of $2.5 million in the most recent quarter.
Clarence Chung, chairman and chief executive officer of Entertainment Gaming Asia, said: “The decrease in gaming operations revenue for the first quarter of 2014 was largely due to the decline in revenue from Dreamworld Pailin.
“While Dreamworld Pailin posted lower revenue, it also experienced reduced operating losses in the quarter.
“We are focused on improving the performance of our gaming operations despite the political tensions that impact certain of our markets.”
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