Entertainment Gaming Asia boosts Q2 profit, eyes expansion opportunities

Newly streamlined operations helped gaming operator Entertainment Gaming Asia (EGT) post a seven-figure profit in the second quarter of 2015.

The Nasdaq-listed EGT’s revenue in the three months ending June 30 rose 54% to $7.6m while earnings rose 57% to $3.3m and net income hit $1.5m compared to a $22k loss in the same period last year. It should be noted that Q2 2014 was negatively affected by the loss-making sale of EGT’s underperforming Cambodian casino Dreamworld Pailin last June.

Most of this quarter’s revenue uptick came courtesy of EGT’s gaming products division, which reported sales of $2.7m compared to just $524k in Q2 2014, thanks to significant reorders of casino chips and plaques from existing customers.

EGT is majority owned by Hong Kong’s Melco International Development, whose boss Lawrence Ho is CEO of casino operator Melco Crown Entertainment, which struck a $4.9m products deal with EGT last December. In April, EGT struck a $1.29m products deal with Ho’s in-development Tigre de Cristal casino project in Primorye, Russia, which is set to opens its first phase on Aug. 28.