Net income of casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) rose to US$2.4 million, thanks to a robust net sales in the Asia-Pacific region.
In a regulatory filing, the Nasdaq-listed company on Thursday announced that it has seen an improvement in its net income during the July to September 2016 period compared to US$1.7 million in the same period in 2015.
The casino supplier chalked an estimate of US$22.6 million in total revenues for the third quarter of 2016, up by 13.7 percent in year-on-year terms
GPI attributed the rise of its net income to the positive net sales in Asia Pacific, which soared by 75 percent in year-on-year terms at US$8.7 million in the third quarter of 2016. The Asia-Pacific region accounted for 38.5 percent of GPI’s overall revenue in the three months to September 30, up by 13.5 percentage points compared to the same period last year.
“The increase in our net income … is primarily due to an increase in casino currency sales and a decrease in our general and administrative expenses,” the firm stated.
GPI has bought Dolphin Products Ltd, a subsidiary of gaming supplier Entertainment Gaming Asia Inc., in May for US$7.3 million. Dolphin Products is focused on manufacturing and distributing gaming chips, gaming plaques and related products to casinos in Asia and Australia.
It said that the unsettled US$2.2 million of the US$7.3 million will be paid over the next two years.
“The acquisition of Dolphin’s assets strengthened our position in the growing Asian market,” GPI stated. “We anticipate shipping our first orders under the Dolphin brand in the fourth quarter of 2016.”
GPI said its backlog at September 30 – which reflects signed orders scheduled to be delivered in the following 12 months – stood at US$19.1 million. Of that, US$10.1 million were booked via the firm’s Asian subsidiary, Macau-based GPI Asia Ltd.
“While there are a number of casinos scheduled to open in 2016 and 2017 in Macau, continuing uncertainty arising from regulators’ decisions on the timing of openings and the number of tables allotted to each new casino will impact both the amount of revenue we recognise and the timing of revenue recognition,” GPI stated in its filing.