BUSINESS

Genting Singapore profit falters; EGA moves tons of chips; AGTech cuts losses

TAGs: AGTech, Entertainment Gaming Asia, Genting Singapore, Lucky Racing, Resorts World Sentosa, Singapore

agtech-resorts-world-sentosa-entertainment-gaming-asiaGenting Singapore, the division of the Malaysian conglomerate that operates Singapore’s Resorts World Sentosa integrated resort casino, has reported a 34% drop in its third-quarter profit to S138m (US $112.9m). Total revenue was off 16% to S670.2m ($548.2m) while purely gaming revenue fell 20% to S528.4m ($432.2m) and gaming profits fell 47%. On the plus side, non-gaming revenue rose 4%. Last month, Singapore’s other casino operator, Las Vegas Sands, reported a 27.8% drop in casino revenue at Marina Bay Sands. Both casinos turned in their worst performance in 18 months, and gaming analyst Jonathan Galaviz told Bloomberg the dual slowdown “cannot be explained by anything other than a fundamental downshifting of consumer appetite for gaming, at least temporarily.” However, Galaviz noted that the two casinos “remain highly lucrative and profitable for their owners.” Genting Singapore’s shares dipped nearly 3% on the day’s news to their lowest point in almost two-and-a-half years.

Entertainment Gaming Asia, which operates gaming establishments in Cambodia and the Philippines and supplies gaming products to other casinos in the region, reported a 21% gain in revenues to $7.85m for the three months ending Sept. 30. However, a significant rise in costs resulted in net income falling from $647k in Q3 2011 to just $43k this year. Chips & plaques contributed revenue of $1.7m compared to just $241k in Q3 2011 and the company already has orders for $1.9m more in Q4, much of it going to the new Solaire Resort & Casino in Manila. Total revenue from gaming operations rose 2% to $4.5m. Slots contributed $4.1m of this total, off 5% due to decreased net win per machine at NagaWorld in Cambodia, partially offset by increased win at slot operations in the Philippines. The company confirmed that Dreamworld Poipet, a partnership with a local Cambodian casino company, is set to open on the Cambodia/Thai border in Q1 2013. The company has $10.6m cash on hand and continues to pay down debt.

Hong Kong-based sports lottery services provider AGTech Holdings recorded a 178% rise in Q3 revenue to HK$64.3m (US $8.3m). Gross profit rose 5% to HK$18.7m ($2.4m), allowing AGTech to decrease its quarterly loss by 3% to HK$8.1m ($1.04m). For the nine months ending Sept. 30, AGTech revenue is up 145% to HK$163.6m, most of it attributable to the December 2011 acquisition of sports lottery terminal and system provider GOT Technology Co. Lucky Racing, the virtual sports betting game collaboration with UK bookies Ladbrokes, is now available in over 1,500 shops in China’s Hunan province and accounts for 36.3% of the province’s total sports lottery sales. AGTech claims to have been approached by other provinces looking to get Lucky and is in “advanced commercial discussions” with one province to launch a new game based on “a virtual match rather than a virtual race.”

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