EGA Reports Losses Due to NagaWorld Slots

Entertainment Gaming Asia (EGA)—which leases slot machines and once operated the Dreamworld casino in Pailin province—is continuing to incur hefty losses, with its third-quarter gaming revenue down 9 percent year-on-year as a result of lower player numbers at Phnom Penh’s NagaWorld casino, according to the company.

In a filing to the U.S. stock exchange Nasdaq on Thursday, EGA reported revenue of $4 million between the start of July and end of September, down from $4.3 million during the same period last year.

EGA, a subsidiary of Macau gaming giant Melco International Development, attributed the decline primarily to renovations of NagaWorld’s casino floor, which disrupted the use of slot machines.

“The decrease in gaming operations revenue for the third quarter of 2014 was largely due to a decline in revenue from NagaWorld,” EGA CEO Clarence Chung said in the filing.

“In addition to increased player jackpot payouts for our NagaWorld operations, we experienced some business disruption and a temporary reduction in installed machines during the quarter due to NagaWorld’s renovation of certain parts of its casino floor,” he said.

“With this floor renovation now complete, our installed machine base and player traffic levels have returned to more normalized levels,” he added.

EGA also reported a 9 percent drop in revenue last year compared to 2012, from $26.8 million to $24.3 million.

Last month, Nasdaq granted EGA until April 13 next year to ensure that its share price meets the minimum $1.00 bid price requirement or risk being delisted. EGA’s share price closed at $0.54 on Friday. The last time the company was trading at the $1 minimum was on March 6, when its shares opened at $1.01.

In June, EGA sold the struggling Dreamworld Pailin casino for $500,000 to the wife of former provincial governor Y Chhien.

“Gaming operations revenue was comprised solely of slot participation as the Company ceased operations of its Dreamworld Pailin casino on June 1, 2014 and, as such, all the related historical revenues and expenses have been reclassified as discontinued operations for the presented periods,” EGA said of its third-quarter earnings in Thursday’s filing.

EGA continues to operate Dreamworld Poipet, a 300-machine slot hall, and, as of last year, 200 slots at Thansur Bokor casino, which is located in one of three hotel casinos being built on Kampot’s Bokor mountain by businessman Sok Kong’s Sokimex Corporation.

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