GGRAsia – NagaCorp’s first half net profit up 24 percent

NagaCorp’s first half net profit up 24 percent

Aug 09, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck

Cambodia casino operator NagaCorp Ltd on Monday said its net profit for the first half of 2016 increased by 24 percent year-on-year, to US$125.2 million. The Hong Kong-listed company reported total revenue of US$288.5 million, up by 10.3 percent from the prior-year period.

The company said gross gaming revenue at its Phnom Penh gaming resort NagaWorld (pictured) accounted for 96.1 percent of total revenue, at US$277.1 million. It rose 10.2 percent year-on-year, from US$251.4 million in the first half of 2015.

In the VIP segment, NagaWorld’s rolling chip turnover for the six months to June 30 jumped 26 percent from a year earlier to about US$4.5 billion, the firm said in Monday’s filing to the Hong Kong Stock Exchange. The win rate for the period was 2.5 percent, the firm added. During the period, NagaCorp said it made provision for an impairment loss of US$0.8 million.

In the mass market, table “buy-ins” rose 17 percent year-on-year to nearly US$305.6 million. Electronic gaming machines “buy-in” was up 18 percent year-on-year in the first half of 2016, to US$741.8 million, the company said.

Revenue from gaming tables increased by 6.3 percent year-on-year to US$173.6 million in the six-month period, said NagaCorp. The firm reported revenue from electronic gaming of US$103.5 million, up 17.5 percent from the prior-year period. The higher figure includes a fee of US$60 million paid by a group of investors for the placement and operation of electronic gaming machines at NagaWorld.

The company operated a total of 209 VIP gaming tables and 87 mass-market tables as at June 30. It offered 1,662 electronic gaming machines at the end of the first half of 2016.

NagaCorp declared an interim dividend of US$0.0277, payable on September 13.

The company additionally announced on Monday that NagaCity Walk, a shopping complex it is constructing next to NagaWorld, is scheduled to have a soft opening this month. In May, NagaCorp acquired the Citywalk Group – owner of NagaCity Walk – at a consideration of US$94 million. Citywalk Group was held by Chen Lip Keong, NagaCorp’s controlling shareholder.

“The opening of the NagaCity Walk in August 2016 will mark a significant step in the group’s development. NagaCity Walk will enhance the overall retail experience available to patrons and further strengthen NagaWorld’s appeal to both the VIP market and mass market,” NagaCorp said in Monday’s filing.

The casino operator said that China Duty Free Group has already leased about 3,900 square metres (41,979 sq feet) in the NagaCity Walk to operate duty-free shopping at the premises.

NagaCorp broke ground in 2015 on its planned gaming resort in the Russian Far East. On Monday, the company said that the project near the port city of Vladivostok “remains broadly on schedule for operation by 2018”.