Hong Kong-listed NagaCorp, the owner and operator of Cambodia’s NagaWorld integrated resort in Phnom Penh, reported gross gaming revenues of US$283.4 million in the first six months of 2024, up 12.3% thanks primarily to the mass gaming segment.
Mass market GGR climbed by 17.8% year-on-year to US$192.0 million, with the company noting that average daily business volumes for the segment saw a 5.7% year-on-year increase from US$10.0 million to US$10.5 million, representing a recovery to 87.2% of pre-pandemic levels.
This growth, it added, was primarily attributable to the stable and improving headcount at NagaWorld, the resilience of the captive domestic market and the recovery of international arrivals to Cambodia.
VIP was more subdued, growing by a collective 2.3%. NagaCorp separates its VIP segment into Premium VIp, referring to its direct offering, and Referral VIP in which it utilizes agents.
In 1H24, average rolling per Premium VIP player increased by about 11.6% year-on-year, the company said, recovering to 82.6% of pre-pandemic levels on the back of the return of business travellers to Cambodia and ongoing conversion of some previous Referral VIP players into direct Premium VIP players.
Revenue from the Referral VIP market grew by 17.6% during the period, supported by an improved win rate of 3.8% despite softer rollings. Average daily rolling increased sequentially quarter-on-quarter by 33.3% to US$5.1 million, attributable to the ongoing gradual return of both leisure and business travellers patronising NagaWorld.
However, the Referral segment remains relatively small, with NagaCorp stating that mass and Premium VIP combined accounted for 89.0% of 1H24 GGR and 93.4% of profit.
Despite the increase in GGR, NagaCorp recorded a US$1.0 million loss for the quarter due to a recently announced US$89.1 million non-cash impairment loss applied to its stalled integrated resort development in Russia. EBITDA of US$55.5 million was also down from US$143.2 million a year earlier on the same impairment.
Looking ahead, the company said it retains faith in the recovery trajectory of the Cambodian market.
“The Group is optimistic about its long-term growth prospects and outlook with Cambodia’s ongoing economic recovery and political stability,” it said.
“The Group is confident that the tourism sector will maintain its recovery momentum, driven by the return of international travel. NagaWorld, as the only integrated resort in Phnom Penh, will continue to benefit by attracting more visitors seeking entertainment and luxurious lifestyle offerings at competitive prices and value.
“The development of Naga 3 as a leading tourism asset for Cambodia aligns with the RGC’s vision and commitment in bolstering the tourism sector. This initiative positions Naga 3 as a key contributor to the regional tourism landscape, showcasing a shared dedication to elevating the global presence of Cambodia’s tourism.”
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