Declines continue for EGA
Declines continue for EGA
Casino operator Entertainment Gaming Asia (EGA) reported a 29 per cent decline in revenue during the first three months of the year, continuing its streak of poor financial results.
EGA’s first-quarter financial statement, published on the company’s website on Friday, shows gaming revenue totalled $4.1 million, down 25 per cent from $5.5 million in the first three months of last year.
Revenue from the 1,000 slot machines EGA has across two Dreamworld casinos on the Cambodia-Thailand border, NagaWorld in Phnom Penh and Thansur Bokor in Kampot province reached $2.9 million, down 10 per cent on the previous year’s results.
“The decrease in gaming operations revenue for the first quarter of 2014 was largely due to the decline in revenue from Dreamworld Pailin,” EGA CEO Clarence Chung said in the statement, adding that political tensions in both Cambodia and Thailand had also contributed to the declines.
“We are focused on improving the performance of our gaming operations despite the political tensions that impact certain [areas] of
our markets.”
The latest financial results come after the firm reported an overall 9 per cent revenue decline for 2013. EGA’s 2013 annual report stated that it expected further losses.
On April 17, US securities exchange NASDAQ issued EGA with a warning that it was in breach of the minimum bid requirements of at least $1 per share.
NASDAQ granted EGA a 180-day grace period to return its share price to the minimum requirement. At Friday’s close, EGA stock remained at $0.84 per share.
If EGA fails to meet the minimum bid for 10 consecutive days by October 14, and through a second 180-day grace period, the company may be delisted entirely.
In January, EGA announced it was walking away from its Pailin casino operation, which opened in May 2012, citing a failure to lure gamers from across the Thai border.
“We remain committed to our gaming development strategy and are actively seeking new projects in Indo-China and other growing gaming markets in Asia that have the potential to drive meaningful long-term growth for the company,” Chung, said in the May 8 financial statement.
EGA did not respond to requests for comment.
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