Social gaming venture impacts Entertainment Gaming Asia's bottom line

Lower gaming revenue and increased costs related to the City of Games social gaming operations have impacted the bottom line at Entertainment Gaming Asia in the first quarter of 2017, broadening the company’s losses. In a report on its Q1-2017 activity, the company highlighted:

* Net loss of $2 million – an 81.8 higher loss that that incurred in the same period a year ago;

* Revenue down 31 percent year-on-year at $416,000, attributed to a reduced operating base of Philippines electronic gaming machines following the expiration of a leasing contract with Leisure World VIP Slot Club and lower average daily net win per unit;

* Total expenses increased by $800,000 to $2 million, compared to the same period in 2016, which management explained was directly related to ramping up social gaming operations;

* The company is currently negotiating the $1.9 million cash sale of its remaining operating assets in the Philippines.