• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

NagaCorp profit up 20pct in 1H2017, boosted by GGR surge

Jul 11, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck  


NagaCorp profit up 20pct in 1H2017, boosted by GGR surge

Hong Kong-listed casino operator and developer NagaCorp Ltd posted a 20.3 percent year-on-year increase in net profit to US$150.6 million for the six months to June 30. The growth was fuelled by a 39.6-percent jump in gross gaming revenue (GGR) – to US$386.8 million – at its NagaWorld casino property, the firm said in a Monday filing.

The group declared an interim dividend/distribution of US$0.0208 per share/conversion share for the period. The interim dividend and distribution are scheduled to be paid on August 22.

NagaWorld – located in Cambodia’s capital Phnom Penh – posted “robust business volume growth” across the majority of its business segments, the filing stated. VIP rolling chip turnover increased by 70.7 percent in year-on-year terms to US$7.77 billion, stated the firm. The win rate for the period stood at 2.7 percent, it added. This translated into an 88.6 percent increase in VIP revenue to US$210.5 million during the period.

The group also achieved strong growth in the mass market segment: revenue from main floor tables increased 20.2 percent year-on-year to US$74.5 million.

“This business volume growth [in mass market] is attributable to the improved headcount at NagaWorld as a result of visitation and tourism growth into Cambodia, particularly from China which recorded 36 percent growth in the first five months of 2017,” NagaCorp said.

Nonetheless, revenue from electronic gaming machines at NagaWorld declined by 1.6 percent to US$101.8 million during the period.

As of June 30, NagaWorld had 239 gaming tables and 1,660 electronic gaming machines in operation.

In addition, the property featured an additional 570 third party-operated machines; NagaCorp reported earning US$60.0 million in the first half of 2017 from that licensing deal, the same amount it earned in the prior-year period.

Those 570 machines are to be “strategically located at certain areas” of an upcoming extension to NagaWorld – referred to in filings as the “TSCLK Complex” – the firm stated. The extension will have extra hotel space as well as extra gaming capacity.

The TSCLK Complex – also known as “Naga2″ – is undergoing fit-out and is expected to be operational in the fourth quarter of 2017, NagaCorp stated in the Monday filing.

Positive business environment 

The overall growth in business volumes and GGR in the first half of 2017 was attributable to several factors, NagaCorp stated.

It added: “First, continued confidence in the political climate and social order of Cambodia’s operating environment leads to favourable economic conditions and increasing visitation, especially from China. Second, confidence in the operating environment leads to increasing economic activity, resulting in increasing numbers of investors and a growing expat[riate] population in Phnom Penh and driving footfall into NagaWorld. Third, as a result of the completion of Naga2, the company’s balance sheet has strengthened.”

Naga2 is likely to produce US$113 million  in incremental earnings before interest, taxation, depreciation and amortisation (EBITDA) during 2018, its expected first full year of operation, said a June note from brokerage Union Gaming Securities Asia Ltd.

Non-gaming revenue at NagaWorld increased by 29.8 percent year-on-year to US$14.8 million in the first half of 2017, “primarily from higher occupancy and average room rates as well as better performance across all the food and beverage outlets,” NagaCorp said.

The firm is also developing a casino resort in the Primorye Integrated Entertainment Zone (IEZ), close to the Russian Pacific port city of Vladivostok. “An office has been established in the city centre of Vladivostok… and certain key personnel have been appointed to monitor various aspects of the progress of the project which remains broadly on schedule for operation by 2019,” NagaCorp stated in Monday’s filing.


  • tweet
Related articles
  • Guangdong urges cross-border bet criminals to surrender
    Guangdong urges cross-border bet...

    Apr 09, 2021  

  • China probed 17,000-plus cross-border gambling cases
    China probed 17,000-plus cross-border...

    Apr 09, 2021  

More news
  • Macau casino 1Q EBITDA softer sequentially: MS
    Macau casino 1Q EBITDA softer...

    Apr 12, 2021  

  • Mohegan to cut debt/EBITDA soon says Moody’s
    Mohegan to cut debt/EBITDA soon says...

    Apr 12, 2021  


Latest News

Macau casino 1Q EBITDA softer sequentially: MS

Macau casino 1Q EBITDA softer sequentially: MS

Apr 12, 2021  

Banking group Morgan Stanley expects Macau casino industry earnings before interest, taxation, depreciation and amortisation (EBITDA) to have fallen sequentially in the first quarter, despite an...
Read More
Mohegan to cut debt/EBITDA soon says Moody’s

Mohegan to cut debt/EBITDA soon says Moody’s

Apr 12, 2021  

Philippines needs AML reform on casino biz: IMF

Philippines needs AML reform on casino biz: IMF

Apr 12, 2021  

Manila quarantine easing to April 30, casinos shut for now

Manila quarantine easing to April 30, casinos shut for now

Apr 12, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


150

Total number of gaming tables to be in operation at the expanded Jeju Lotte Tour Casino in South Korea



Most Popular

  • GEN Malaysia may deleverage within 2 years says FitchGEN Malaysia may deleverage within 2 years says Fitch April 7, 2021
  • Moody’s expects MGM, Wynn to pursue large IR development Moody’s expects MGM, Wynn to pursue large IR development  April 8, 2021
  • Macau daily visit volume down 17pct m-o-m for April 2 to 6Macau daily visit volume down 17pct m-o-m for April 2 to 6 April 8, 2021
  • Macau, mainland bust gambler-targeted money scam ringMacau, mainland bust gambler-targeted money scam ring April 8, 2021
  • China probed 17,000-plus cross-border gambling casesChina probed 17,000-plus cross-border gambling cases April 9, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us