Asia Entertainment & Resources Earnings: Everything You Must Know Now
Asia Entertainment & Resources (NASDAQ:AERL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Asia Entertainment & Resources Earnings Cheat Sheet
Revenue: Decreased 19.09% to $56.4 million from the year-earlier quarter.
Quoting Management: “Despite the lower year-over-year results we believe we managed our business appropriately to reduce exposure to undue risk that can impair longer-term growth,” said Mr. Man Pou Lam (Mr. Lam), Chairman of AERL. “The tightening of credit to junket agents had a near-term impact on our overall performance that we expect will reverse as a result of improvement in the Chinese economy. To that end, as of September 2012, we shifted our remuneration model away from a fixed commission model to a revenue sharing model, which should allow us to improve our competitiveness in the market and hopefully increase our net income and Non-GAAP income. We remain committed to growing our business presence in the Macau VIP gaming market and continuing to create value for our shareholders.”
Key Stats (on next page)…
Revenue increased 4.39% from $54.03 million in the previous quarter.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)