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Exterior Architectural Rendering Of Dreamworld Casino Pailin (Photo: Business Wire)

Stock quotes in this article: EGT 

Q3 2011 Financial Review

Beginning in the fiscal year 2011, the Company reclassified its reporting segments to include: “gaming”, which consists of its gaming machine participation and future casino operations; and “other products,” which consolidates the previously reported segments of “table game products” and “non-gaming products” from the Company’s wholly-owned Dolphin subsidiary. The new manner of segment reporting has been applied retroactively to all periods presented.

Entertainment Gaming Asia’s third quarter of 2011 consolidated revenue was $6.5 million, a decrease of 2% compared to $6.6 million in the third quarter of 2010. This decline was driven by decreased sales of gaming chips and plaques in the Company’s other products division, which typically experiences meaningful quarterly fluctuations in order flow due to the timing of new casino openings and customer reorders. Solid improvement in the Company’s gaming participation operations served to significantly offset this decline.

Revenue from EGMs on participation was $4.4 million in the third quarter of 2011, an increase of 7% compared to $4.1 million in the third quarter of 2010. The increase reflected strong consolidated average WUD driven primarily by targeted marketing to customers and machine mix improvements at the Company’s NagaWorld operations in Cambodia. The Company’s Philippines operations also experienced strong improvement in average WUD due to efforts to strategically manage its machine placements and marketing initiatives focused on the Company’s most promising venues in this market.

WUD*  
    Q3:11   Q3:10   Y/Y ∆
Cambodia   $233   $219   6%
Philippines   $68   $56   21%
Consolidated   $145   $125   16%
EGM Seats in Operation
    9/30/11   9/30/10   Y/Y ∆
Cambodia   715   679   5%
Philippines   780   846   -8%
Consolidated   1,495   1,525   -2%
   

* WUD figures exclude EGMs operating under a new venue’s soft launch or when a venue’s revenue is recognized on a cash rather than accrual basis. As a result, 146 EGM seats were excluded from the above third quarter of 2011 WUD calculation. Were these seats included in the third quarter of 2011 WUD calculation, WUD for this period would have been $215 for Cambodia, $66 for the Philippines, and $137 for the consolidated average.

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