Entertainment Gaming Asia Inc. Reports Third Quarter 2015 Results
- Company Achieves Profitability for the Third Consecutive Quarter of 2015 Driven by Improvements in Both Business Divisions -
PR Newswire Entertainment Gaming Asia Inc.
November 9, 2015 7:30 AM
HONG KONG, Nov. 9, 2015 /PRNewswire/ -- Entertainment Gaming Asia Inc. (EGT) ("Entertainment Gaming Asia" or "the Company"), a gaming company focused on emerging gaming markets in Pan-Asia, today reported operating results for the third quarter ended September 30, 2015 and reviewed recent corporate progress.
.Entertainment Gaming Asia Inc. Logo
Key Financial Metrics
Consolidated revenues of $8.3 million for the third quarter of 2015
Adjusted EBITDA (earnings from continuing operations before interest, taxes, depreciation, amortization and non-cash charges) of $3.4 million for the third quarter of 2015
Net income of $1.4 million for the third quarter of 2015
Cash balance of $25.3 million and zero debt as of September 30, 2015
Third Quarter of 2015 Financial Performance
The Company's third quarter of 2015 consolidated revenue was $8.3 million, an increase of 88% compared to $4.4 million in the third quarter of 2014 due to increases in both the gaming operations and gaming products business divisions.
Gaming operations revenue was $4.5 million for the third quarter of 2015, an increase of 13% compared to $4.0 million in the third quarter of 2014. Average consolidated daily net win per unit was $120 for the third quarter of 2015, an increase of 20% compared to $100 in the third quarter of 2014. The increases were primarily due to improvements in the Cambodia operations partially offset by a decline in the Philippines operations.
Cambodia average daily net win per unit was $152 for the third quarter of 2015, an increase of 33% compared to $114 in the prior year period primarily due to improved performance at NagaWorld.
Sentiment: Strong Buy
They would get the #$%$ sued out of them if they tried to take EGT private using the current depressed PPS as the benchmark.
Excluding lawsuits for a moment, I guess you could reasonbably arge that the Shelf Offering was the first step in that process.
From a business perspective it would make sense if EGT were a privately held company. As a private organization (or a division or a larger organization) they would not be as pressured to be profitable every quarter and they could continue to stumble along, as they have for the last 3 years, from one bad idea to the next w/o having to answer to shareholders for their bad choices and decisions.
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Why do you think I said the stocl could be $3 and not $5, 6 or 7. There are enough naïve people out there would have gladly bought EGT on this report thinking the Dolphin sales were not just the last of the Ho casinos opening or that Naga was going to be renewed. There is little chance Naga is renewed or if it is, at anything close to the contract terms they had now.
IHUB even turned off the most blind and faithful in this stock. Even Cortical Chatter has either exited his position or is too shell shocked to post.
Ihub and ihubettes are the morons who cried wolf.
EGT to $10, EGT to $5, EGT to $3. EGT two reverse splits since Isuckit showed up.
$3 is the sell on this stock... if it happens.
Still sub .01 EPS compared to pre-RS and this statement did not exactly fill me with confidince, "we have been active in our efforts to secure new projects, in existing and new businesses, that would enable us to best capitalize on growth opportunities in gaming markets in Asia and, ultimately, replace cash flow from NagaWorld in the event we do not renew this contract by March 2016."....NAGA represents a significant % of EGT's revenue and is the mnost productive venue by 40%-50% per EGM..
Has EGT demonstrated clearly that they can successfully develop and pursue new revenue streams? My opinion is 'No'; here's why I think that...
*The Pailin debacle
*Thansur Bokor and Dreamworld Poipet not pulling in anything close "Naga-like WUD" as originally hyped; in fact thay are only making "small, yet positive, contributions to overall revenue growth"
* P.I. is generating 1/4 Naga WUD. The the P.I. WUD dropped 18% - down to 59 - and probably will continue to do so as The Mega caninos in the PI pull in all of the visitor traffic and small Casinos are frequented only by locals. Ther are truck stop slot parlors with more EGMs than some of the PI casinos.
* Based on this quarter's results, EGT is operating @ about a 25% profit margin in their Gaming Products division. The success of that division is VERY closely tied to Melco. If NAGA revenue goes away, can Melco (and/or the Ho family operations) open enough new casinos (or rerack) year-in-and-year-out to keep EGT's casino chip business afloat?
* Lastly, share volume. EGT has done little to effectively drive share volume (other than a 'shelf-offering' sale that insiders could use to infuse a life-support shot in the arm into EGT that they do not have to show on their books and a payable or pay back ). If no new revenue rabbit gets pulled out of the hat in the next 2 Qs, and they do not renew NAGA in March, EGT goes sub 1.00, gets delisted, and is taken private for pennies on the dollar.
Great Earnings report, very promising.
If they had never had IHUB pumping this and burning so many people, turning them off this stock forever we may be trading 5,000 shares a day and the stock could be $3
They need to change the name of the company to Ihub Sucks and stock symbol to NOHUB
Hope that EGT Management discusses on the CC what they plan to do to generate some wall street interrest in EGT before it fades into COMPLETE invisibility .
The CEO is supposed to be looking out for Shareholders (including himself - as one of the largest shareholders).If any of you are on that call, I think that is a fair and reasonable question to ask.
Welcome 6$ for $EGT : Ihub Target: Follow and Profit.
This is purely Ihub prediction. Do your own research before buying.
Risk are common with any investment in stocks. Do your analysis.
Sentiment: Strong Buy
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but Ihub and suckeettes said EGT to 55 in 2015 because of Naga. You mean they just suck?
Cambodia casino operator NagaCorp Ltd says it has concluded a 10-year deal with what it describes as “four independent third parties” for them to run a revamped, 300-unit, electronic gaming machine (EGM) business at its flagship NagaWorld resort in Phnom Penh.
The investors and NagaCorp will jointly manage and operate the EGM business, it said. The casino operator will be entitled to 70 percent of the revenue generated from it, and the outside investors the remaining 30 percent, said a NagaCorp filing to the Hong Kong Stock Exchange after trading hours on Thursday.
One of the four investors in the new EGM zone at NagaWorld is an individual referred to only as “Jinfu” and said to be the owner of Central Asia Group Co Ltd. According to its website the firm is a Guangdong-based electric light manufacturer.
Under the new EGM management deal agreed on Thursday, the four parties will pay US$40 million – a sum already pledged by one of the parties in return for exclusive negotiations according to a NagaCorp filing on May 6.
In addition, the investors have agreed to deposit another US$10 million with NagaCorp “at a later date and in joint consultation with Naga,” to purchase “state-of-art EGMs” to be placed in the revamped area.
The other three investors in the EGM area are Cambodia-incorporated firms Top Summit Garment Inc; Jin He Tai Construction Co Ltd; and CMC Phnom Penh Import Export Co Ltd.
EGT Contract Renewal with NAGA in 1Q2016 will either be VERY expensive or it will not happen...
Hard to get to a 2.5x+ PPS (and associated 2.5x+ enterprise valuation) when EGT is only trading 883 shares in a day.
Face it. There is no interest in EGT by Wall Street and Management is doing nothing to make the stock more interestING to Commercial or even Retail investors ...so here we sit ...trading sideways at the historical low end of our historical trading range (2.29 = .1431 pre 2x RS).