Asia Entertainment & Resources Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2013. For the three months ended June 30, 2013, the company reported revenue of $63,544,865, an 8.6% increase from $58,531,067 in the same period of 2012. The increase in Revenue was a result of a higher than normal win rate of 3.06%, the change in remuneration model from the fixed commission model of 1.25% on Rolling Chip Turnover to the revenue sharing model in September 2012, and an increase in net services revenues related to hotel and casino services charged to junket agents after the adjustment to commission rates. Operating income attributable to ordinary shareholders before change in fair value of contingent consideration was $6,573,053 against $14,331,816 for the same period in the last year. Net loss attributable to ordinary shareholders was $2,978,581 against net income attributable to ordinary shareholders of $22,037,168 for the same period in the last year. Net loss per basic and diluted share was $0.07 against net income per basic and diluted share of $0.48 for the same period in the last year. The decrease in net income and non-GAAP income for the three months ended June 30, 2013 was due primarily to decreased Rolling Chip Turnover, higher commissions as a result of greater non-marker commission paid, the upward adjustment to commission rates as a result of the company compensating its junket agents for no longer providing complimentary hotel and casino services, increased market competition, and a smaller percentage of direct business. Non-GAAP income (before amortization of intangible assets and change in fair value of contingent consideration) was $9,121,595 against $15,600,135 for the same period in the last year. Non-GAAP earnings per diluted share (before amortization of intangible assets and change in fair value of contingent consideration) were $0.20 against $0.34 for the same period in the last year.

For the six months, total revenues were $125,663,364 against $125,849,178 for the same period in the last year. Operating income attributable to ordinary shareholders before change in fair value of contingent consideration was $19,456,324 against $31,471,041 for the same period in the last year. Net income attributable to ordinary shareholders was $3,975,124 against net income attributable to ordinary shareholders of $37,365,472 for the same period in the last year. Net income per basic and diluted share was $0.09 against $0.81 for the same period in the last year. Net cash provided by operating activities was $16,799,893 against $38,905,094 for the same period in the last year. Non-GAAP earnings per share (before amortization of intangible assets and change in fair value of contingent consideration) were $0.55 against $0.74 for the same period in the last year. Non-GAAP income (before amortization of intangible assets and change in fair value of contingent consideration) was $24,433,778 against $34,007,876 for the same period in the last year.

The company believes that for the remainder of 2013, all of its business will remain on a revenue sharing basis. The company is providing non-GAAP income guidance for the year ending December 31, 2013 of $60 million to $75 million based on the current and expected performance of its existing five VIP gaming rooms in Macau. The guidance includes $2.8 million in additional expenses associated with the Hong Kong Listing and acquisition of the VIP gaming room at Le Royal Arc Casino in Macau, and does not take into consideration any possible future expansion or additional VIP gaming rooms.