EGA reports Cambodian casino losses
EGA reports Cambodian casino losses
Nasdaq-listed Entertainment Gaming Asia (EGA) reported a net loss of $6.7 million for the fourth quarter of 2016, compared with a loss of $2.7 million in the same time in 2015 largely due to the cancellation of its operations in Cambodia, the company said in a filing on Monday.
“During 2016, we disposed of all of our gaming assets in Cambodia, certain gaming assets in the Philippines and the principal assets of the gaming products business,” said Clarence Chung, chairman and chief executive of EGA, in an accompanying statement.
The electronic gaming machines (EGMs) supplier added that the closure of Cambodian operations incurred a net loss of $4.3 million.
The company began winding down its presence in the Kingdom in July of last year when it announced that it was selling 670 EGMs placed in the NagaWorld casino to an unnamed Cambodian party for $2.5 million. Then, in October, it sold all 71 of its EGMs in Thansur Bokor Highland Resort in a cash payment valued at $250,000.
Finally, in December of last year, the firm announced that it had fully offloaded 278 EGMs placed in Dreamworld Club Poipet, including 72 EGMs held in storage in Cambodia for a cash payment of $900,000. It also sold of its gaming chip and table equipment arm last May for $5.9 million.
“These sales have provided cash proceeds of $10.3 million and the potential for earn-outs on certain gaming chip and plaque sales related to the now discontinued gaming products business.
To date, we have received $8.1 million of the sales proceeds and no earn-outs on gaming chip and plaque sales,” Chung added. “We currently have approximately $32 million in cash and are exploring avenues to apply these resources.”
The company, which is majority controlled by Hong Kong-listed Melco International Development Ltd, reported that the firms consolidated total revenue for 2016 was approximately $2 million, a decrease of 26 percent garnered from its existing operations in the Philippines, while EGA reported a net loss of nearly $9.7 million compared with an income of $820,000 in 2015.
