Online gaming has a bright future in the Asian market and with each day more number of people are getting to online format of gaming. In the last few years there has been a considerable growth in the online gaming industry and this is the reason more number of companies are getting into this race. With each passing day better a improvised gaming products and games are being launched. Almost each gaming company’s annual balance sheet looks healthy and with each year there is a better growth. Recently Pan- Asia focused Entertainment Gaming Asia Inc reported a 41 percent increase in their consolidated revenue for the 2015 fiscal year. At $31.5 million, due to increase in gaming operation and gaming products business divisions the company has recorded a healthy growth as they added as per a recent release.
Gaming operation revenue was up 11 percent to 18.1 million for this year and consolidated daily net win per unit increased 16 percent to $122. This increase is a result of improvement in Cambodian operations as per the Melco International Development Limited subsidiary. In the year 2015 the revenue from gaming products was $13.4 million compared to $6.0 million in the year 2014 which is considered to be a good improvement. Opening or new casinos and existing customer’s reorders were the main reason of their great performance. Even adjusted EBITDA was reported at $11.2 million in the fiscal year 2015 compared to $5.1 million in the previous year.
Entertainment Gaming Asia Inc. reported a net income of $820,000 as compared to a net loss of $2.8 million in fiscal year 2014. This all happened because of significant improvement in gaming products sales as well as gross margin. In addition to this increase in gaming operations revenue and a reduction in SG&A expense added to the growth.
Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, said, “We are pleased to report a profitable 2015 fiscal year driven by strong gaming operations revenue, record gaming products performance and cost controls. We accomplished this despite incurring approximately $3.0 million in non-cash charges associated with both impairments of certain gaming operations assets and the loss on disposal of obsolete equipment for the gaming products division in the fourth quarter.
As a result of this solid performance, we have increased our cash position by nearly $13.4 million in the 2015 fiscal year to $30.7 million as of December 31, 2015. We are focused on utilizing these resources to secure projects in new and existing markets with the goal of fuelling long-term growth for the Company.”
