• 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
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

NagaCorp’s 1H net profit jumps 36pct to US$245mln

Jul 24, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck  


NagaCorp’s 1H net profit jumps 36pct to US$245mln

Hong Kong-listed casino operator and developer NagaCorp Ltd has reported net profit of about US$245.1 million for the first six months of the year, a 36.1-percent increase over the corresponding period last year.

In a statement to the Hong Kong Stock Exchange released after the markets closed on Tuesday evening, NagaCorp said its improved profitability was driven primarily by gross gaming revenue (GGR) that grew by 22.2 percent compared to the first half last year to US$872.4 million.

Casino operations in the Cambodian capital of Phnom Penh delivered more than 97 percent of the company’s US$891.6 million revenue in the first half, with its hotel and entertainment division contributing the remainder.

The company identified political stability in Cambodia, an improving operating environment, business growth at Naga 2, tourism and the expansion of its VIP gaming business among the reasons for its half-year results.

Hong Kong-listed NagaCorp has an exclusive licence to operate casinos in Phnom Penh and its surroundings. It started operations with the NagaWorld property, now referred to as Naga 1, which opened in December 2006. That property now links to Naga 2, an expansion that opened in November 2017. The overall complex is now known as NagaWorld Complex.

NagaCorp had reported a net profit for full calendar year 2018 of US$390.6 million. Then, growth was fuelled by a 54.9-percent jump in overall GGR to nearly US$1.43 billion for the 12 months to December 31, led by improvements in the VIP segment.

In the first half of this year, NagaCorp said its VIP segment contributed about 73 percent of revenue, US$649.9 million. One-quarter of the company’s revenue came from the mass-market segment, some US$222.5 million.

Compared to the corresponding period last year, the revenue from the mass-market segment contributed about 3 percentage points more towards total revenue and had a higher profit margin, further adding to NagaCorp’s profitability.

On its VIP business, the statement said “a few large Macau-based junket operators have set up fixed based operations and officially commenced bringing in VIP players to NagaWorld” this year.

Macau-based junket operator Guangdong Group confirmed to GGRAsia in January that it would expand its VIP gaming service to Naga 2.

Tak Chun Group, another leading Macau investor in gambling junkets, also opened a VIP gaming club at the NagaWorld casino resort complex earlier this year.

A third operator, Suncity Group, moved its operation in Naga 2 to a bigger space that accommodates more tables.

NagaCorp said increased tourism to Cambodia, including a 40-percent increase in arrivals from mainland China in the first five months of this year, had contributed to its business growth.

China provides the bulk of the kingdom’s tourist arrivals and mainland gamblers are widely viewed as the Asia-Pacific region’s most lucrative clients. NagaCorp said there were 1.1 million arrivals from the mainland up to the end of May.

The statement offered no new details on the proposed Naga 3 expansion, which GGRAsia reported on earlier this month. Naga 3, to be a mix of gaming and non-gaming, is expected to comprise of two 66-storey hotels, two 45-storey hotels, one 48-storey condominium hotel, one three-level basement and an 11-level multi-entertainment podium.

The new addition to the NagaWorld Complex, Naga 3 will have a total cost of around US$3.52 billion and see casino specialist Steelman Partners LLP handle the design.

NagaCorp also stated that the planned refurbishment of 500 hotel rooms out of a total of 750 at Naga 1 had caused “minimal disruption” to the company’s operations during the first half of 2019. “The group believes that the completion of the Naga 1 upgrade project is expected to contribute positively towards the group’s business volume growth,” it stated.

The most recent results briefly mentioned NagaCorp’s investment in a casino resort in the Primorksy Krai region, near the eastern Russian city of Vladivostok. The first phase of the project includes a hotel, casino and a conference hall, and was said to be “broadly on schedule for completion in 2019.”

“The group believes that its strategy to diversify its business geographically and expand into new casino markets will drive revenue growth in the long term,” NagaCorp stated.

In Tuesday’s statement, the board declared an interim dividend of US$0.0339 a share to be paid to shareholders in the register at the close of business on August 8. The dividend will be paid on August 20.


  • tweet
Related articles
  • U.N. warns about link between Mekong casinos and crime
    U.N. warns about link between Mekong...

    Sep 28, 2023  

  • ASEAN, China agree to jointly fight gambling-related crime
    ASEAN, China agree to jointly fight...

    Sep 27, 2023  

More news
  • Sands China to revitalise firecracker factory, old streets
    Sands China to revitalise firecracker...

    Sep 29, 2023  

  • Bloomberry aims to raise up to US$99mln via share sale
    Bloomberry aims to raise up to US$99mln...

    Sep 29, 2023  


Latest News

Sands China to revitalise firecracker factory, old streets

Sands China to revitalise firecracker factory, old streets

Sep 29, 2023  

Macau casino operator Sands China Ltd is to add more cultural and tourism elements to the site of the old Iec Long Firecracker Factory and its surrounding areas in Taipa, as part of a government-led...
Read More
Bloomberry aims to raise up to US$99mln via share sale

Bloomberry aims to raise up to US$99mln via share sale

Sep 29, 2023  

S.Korea Daegu Casino fined US$776k for AML breaches 

S.Korea Daegu Casino fined US$776k for AML breaches 

Sep 29, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The Philippines has been the primary growth driver, but really the broader Asian gaming industry is something that’s really important to us”

Matt Wilson

Chief executive of casino equipment provider Light & Wonder



Most Popular

  • International Ent to invest at least US$1bln in Manila IRInternational Ent to invest at least US$1bln in Manila IR September 28, 2023
  • Resorts World Sentosa fined again for AML rule breachesResorts World Sentosa fined again for AML rule breaches September 27, 2023
  • Galaxy Ent to build ice rink, bookshop at Macau old shipyardsGalaxy Ent to build ice rink, bookshop at Macau old… September 28, 2023
  • Events a boon, Citi ups Macau 4Q GGR forecast to US$6.5blnEvents a boon, Citi ups Macau 4Q GGR forecast to US$6.5bln September 27, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us