According to a recent report by Scotiabank, global gaming revenues are expected to stabilize in 2016. The global gaming market had seen a sharp downturn in revenue in 2015 so the 2016 outlook comes as a relief.
Revenue had fallen sharply in 2015 mainly due to a slowdown in gaming activity in Macau.
Scotiabank noted in its report that an anti-graft campaign and closer monitoring of VIPs in Macau led to a sharp decline in gaming revenues in the third quarter of 2015.
Scotiabank further noted in its report that casino operators are focusing on a series of high profile expansions into both domestic and international markets. The good news for casino operators is that Macau is finally showing signs of recovery.
Trans World Corp. (OTCQB:TWOC) is a New York City-based company primarily engaged in the gambling business in the Czech Republic and in the hospitality business in Germany. The Company operates through two segments: casino and hotel. The two independent casinos and Route 59 Complex are included in the casino segment. The hotel segment comprises the Hotel
Columbus and Hotel Freizeit Auefeld. The Company is involved in the acquisition, development and management of gambling establishments, featuring live and mechanized gaming, including video gaming devices, such as video poker machines, primarily in Louisiana.
TWOC announced second-quarter net income of $1.6 million, or $0.17 per diluted share, compared to $710,000, or $0.08 per diluted share, for the same prior year period. The increase in net income was largely due to revenue improvement. Total revenue increased by 37.0% to approximately $13.4 million, compared with approximately $9.8 million for the same prior-year quarter.
Rami Ramadan, CEO at Trans World Corporation, said that the company achieved another good quarter, continuing the positive trend from the first quarter and last year. Ramadan noted that in the second quarter, the company saw increases in drop per head, or increased player wagering, at all of its casinos, coupled with better win or hold percentage in live games.
He added that results were further boosted by higher attendance, as well as a surge in slot revenues, which, in aggregate, contributed to superior revenue, net income and EBITDA when compared with the same prior year second quarter.
TWOC shares have surged in trading today after the company reported its financial results for the second quarter ended June 30, 2016. At last check, TWOC shares were trading 21.33% higher at $4.55 on volume of 21,440, which is significantly above the daily average volume of 818.
TWOC shares have been heading higher since early 2016 and are up close to 100% since the beginning of the year as shareholders applaud the strengthening fiscal situation at the corporate level.
