NagaCorp Ltd, the operator of the NagaWorld casino hotel in Cambodia, told analysts on Thursday it is finalising contracts with eight new junkets, including some from Macau.
“The impact of these junkets could be felt as soon as 4Q14, although 2015 should truly be a break-out year for Naga’s VIP story,” Union Gaming Research Macau Ltd said in a note on Thursday.
Hong Kong-listed NagaCorp said Wednesday total revenue for the first half of 2014 increased by 26 percent year-on-year to US$191 million. The casino operator reported a 27-percent jump in year-on-year terms in gross gaming revenue to US$180.3 million.
NagaWorld is the country’s largest casino complex and the only in capital Phnom Pehn.
The company posted solid growth in the VIP segment driven by the junket incentive programme it launched in 2013. NagaCorp has been expanding table limits for junket partners willing to work on a revenue share basis.
“It is important to point out that the growth in Naga’s VIP segment has come without the benefit of any Macau-based junkets, the introduction of which will materially transform VIP at NagaWorld,” Union Gaming analysts Grant Govertsen and Felicity Chiang wrote in the note.
“The VIP programme will, in part, be driven by Naga’s two Airbus A320s (along with existing smaller jet aircraft), which should launch next month to destinations like Macau and Hong Kong, which will be followed by service to mainland China in October,” added the research house.
NagaCorp said in Wednesday’s filing that it has established a marketing office in Macau as it plans to sign up new junket operators and promote NagaWorld to the North Asian market.
On Thursday’s analyst briefing, the company’s management said the extension of NagaWorld should be operational during the first half of 2017. Naga2 will include more than 1,000 new hotel rooms and luxury suites, up to 300 gaming tables and 500 electronic gaming machines.
During the briefing, the casino operator also announced that it has already started preliminary planning work on Naga3, “which would be located in-between the current NagaWorld and Naga 2 facilities,” Union Gaming said, adding that no other details were announced.
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”Everyone’s expectation is to do a percentage of the past year’s [casino revenue in Macau during China’s National Day Golden Week holiday]. No one is expecting to have an immediate rebound"
Vice chairman and chief operating officer of casino operator Wynn Macau Ltd