GGRAsia – NagaCorp EBITDA up sequentially, business recovering: firm

NagaCorp EBITDA up sequentially, business recovering: firm

Apr 04, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino developer and operator NagaCorp Ltd posted earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$60.5 million for the first three months of 2022. The figure was up 83.3 percent in comparison with the previous quarter. Such EBITDA increased 57.4 percent in year-on-year terms.

The firm said daily average net gaming revenue in the first quarter of 2022 was slightly below US$1.08 million, up one third from the preceding quarter.

The business environment for the firm’s NagaWorld casino complex “continues to improve,” said NagaCorp in unaudited operational highlights filed on Sunday to the Hong Kong Stock Exchange. That was a reference to a reduction of COVID-19 cases in Cambodia and an easing of pandemic-related international travel restrictions in Southeast Asian countries.

“The company currently believes that travellers from these potential markets and the traveller-friendly policies [by the Cambodian government] will help to restore the tourism industry in Cambodia in 2022 and hence, drive up the headcounts in our properties,” said NagaCorp.

The group has a long-life monopoly casino licence for the Cambodian capital, Phnom Penh, via its NagaWorld resort complex (pictured).

Gross gaming revenue (GGR) from casino operations amounted to US$109.9 million, down 13.7 percent from a year earlier, said the firm.

The casino at NagaWorld was shut for part of 2021, from early March to September 15.

Average daily net gaming revenue for NagaWorld’s mass table segment increased to US$572,000 in the first quarter of this year, from US$375,000 in the final three months of 2021, it added.

It said average daily net gaming revenue from electronic gaming machines for the three months ended March 31 was US$280,000, up 15.2 percent in quarterly terms.

Premium mass average daily net gaming revenue in the first quarter of 2022 was US$212,000, representing a sequential growth of 16.5 percent.

First-quarter 2022 VIP average daily net gaming revenue increased 62.5 percent quarter-on-quarter, to US$13,000, said NagaCorp.

NagaCorp also stated its cash and cash equivalents had increased to US$162.7 million as of March-end, compared to US$102.7 million at the end of 2021. “Such increase is mainly due to the continued recovery of business volumes, improved cost efficiency post rationalisation programme, and prudent cash expenditures decision from the company’s management,” the firm said.

NagaCorp Ltd announced last month it would “suspend the development” of a company gaming resort in Primorye, citing “uncertainties” around the project. Brokerage Daiwa had said in a March 8 note that “sanctions” against the Russian Federation had “led to suspension of the Russia project” the casino group.