Q1 .05 vs .16
rev 79,938,622 vs 64,351,897
Iao Kun Group reports Q1 EPS 29c vs. 35c last year excluding items
For the three months ended March 31, 2014, IKGH recorded revenue of $79.9 million, a 24% increase from the same period of 2013. The increase in revenue was primarily a result of a higher-than-normal win rate of 3.60%, as well as revenue derived from the Oriental VIP Room which IKGH acquired in June 2013.
The decrease in net income for the three months ended March 31, 2014 was due primarily to a net increase to the contingent consideration liability for Bao Li Gaming and the Oriental VIP Room due primarily to an increase in the forecasted Rolling Chip Turnover performance based on past performance, and higher commissions as a result of a higher commission rate offered to non-credit agents and super agents. IKGH also incurred higher selling, general and administrative expenses for the three months ended March 31, 2014, including additional management fees paid as a result of the acquisition of the Oriental VIP Room in June 2013, and an increase in the number of employees due to direct employment of some employees from Pak Si and the acquisition of the Oriental VIP Room.
“We were pleased to see an improved Rolling Chip Turnover performance in our first quarter results, which helped lead to a year-over-year increase in our non-GAAP income,” said Mr. Man Pou Lam (Mr. Lam), Chairman of IKGH. “Our marketing campaign to augment our non-marker agent base remains ongoing and our overall strategy remains unchanged – we are committed to expanding our business presence in the Macau VIP gaming market and increasing our market share while prudently managing our capital to create long-term value for our shareholders.”
Outlook for 2014
For the first four months of 2014, IKGH’s Rolling Chip Turnover was US$6.49 billion (an average of $1.62 billion per month), up 17% year-over-year, compared to US$5.55 billion (an average of $1.39 billion per month) for the first four months of 2013.
The Company is maintaining its 2014 Rolling Chip Turnover guidance for its five existing VIP rooms in Macau of US$17 billion to US$19 billion.
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