GGRAsia – NagaCorp’s third quarter VIP roll up nearly 58 pct

NagaCorp’s third quarter VIP roll up nearly 58 pct

Oct 04, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

NagaCorp Ltd, the operator of the NagaWorld casino hotel in Cambodia, reported VIP gambling rolling chip volume of approximately US$3.24 billion for the third quarter of 2017, up by 57.5 percent from the prior-year period.

According to figures compiled by GGRAsia based on the firm’s unaudited highlights published in Hong Kong on Tuesday, buy-in for mass-market table play in the three months to September 30 rose 26.7 percent year-on-year, to nearly US$191.3 million.

The bills-in tally for electronic gaming machines (EGMs) expanded by 17.1 percent year-on-year, to about US$463 million.

NagaWorld (pictured) is the country’s largest casino complex and the only one in the capital Phnom Penh.

“VIP volume increased nearly 58 percent, although the absolute dollar level was down on a sequential basis, which we would attribute to some number of deferred trips as junkets and players await the opening of Naga2 in the coming weeks,” said a Tuesday note from brokerage Union Gaming Securities Asia Ltd.

Naga2 is a hotel and gaming extension of NagaWorld casino resort. Tim McNally, NagaCorp’s chairman, told GGRAsia in September the new facility was “still on” for a launch this month. In earlier filings NagaCorp had said that Naga2 – to be connected to NagaWorld by a shopping complex called NagaCity Walk – would include more than 1,000 new hotel rooms and luxury suites, as well as up to 300 gaming tables and 500 EGMs.

Union Gaming analyst Grant Govertsen said in the Tuesday memo: “Our full second half 2017 VIP volume estimate is +64 percent and includes the benefit of Naga2 for the last two months of the year. Given the current trajectory of VIP, in addition to what should be a VIP spike post Naga2 opening, upside to our VIP estimate is likely.”

According to NagaCorp’s Tuesday filing, VIP rolling for the period between January and September stood at US$11.0 billion, an increase of 67 percent in year-on-year terms.

Mass-market table buy-ins for the first nine months of the year stood at US$566.4 million, up by 24 percent, NagaCorp said. The firm also reported strong performance in the EGM segment. The bills-in tally during the January to September period was approximately US$1.32 billion, an increase of 16 percent from the prior-year period.

In July, NagaCorp reported a 20.3 percent 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.