NagaCorp, the Hong Kong-listed operator of NagaWorld in the Cambodian capital of Phnom Penh, has reported a 65.7% year-on-year increase in net profit to US$177.7 million, and a 20.3% increase in EBITDA to US$295.3 million, in 2023, aided by growth across all of its gaming segments.
According to details filed overnight, NagaWorld generated gross gaming revenues of US$514.8 million last year, up 15.5% on 2022 GGR, with the company citing “higher revenues across all business segments, positive operating leverage and lower finance cost incurred.”
It also noted that the group’s total cash and bank balances have increased from US$175.2 million as of 31 December 2022 to US$367.6 million as of 31 December 2023. As previously reported by Inside Asian Gaming, NagaCorp is facing repayment of US$472 million in outstanding bonds when they mature in July of this year, with analysts having stated the bonds represent a significant credit risk.
Nevertheless, NagaCorp said overnight that its business is rapidly approaching pre-COVID levels, led by its direct or “Premium” VIP segment which saw average daily rollings grow by 46.5% year-on-year to US$11.7 million in 2023, including a 24.2% sequential increase to US$13.5 million in the December quarter.
“The Premium VIP market continued to be the best performing segment and the average daily rollings in 4Q23 exceeded the average business volumes recorded in FY19,” the company explained.
“The continuing return of business-related travellers (with longer repeated stays and higher spending power) to Cambodia contributed to the growth of this segment as substantiated by the increase in average rollings per Premium VIP player of about 38.3% in FY23 as compared to the previous year.”
Daily mass market volumes increased by 7.2% year-on-year to US$9.9 million in 2023, and by 2.7% sequentially in Q4 to US$10.1 million, to reach 82.3% of 2019 levels, supported by an increase in visitation to the property.
Meanwhile, daily Referral VIP rollings grew by 52.3% year-on-year to US$5.2 million and by 50.5% to US$6.2 million in Q4, with NagaCorp noting an “increasing headcount of Referral VIP customers from broader diversified geographical locations, especially from neighboring countries such as Thailand, Malaysia and Singapore.”
However, it added that Premium VIP and mass gaming accounted for 94% of gross profit for the year.
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