Modest growth for NagaWorld
NagaWorld, a subsidiary of Hong Kong-listed NagaCorp, recorded a modest four percent increase in gross gaming revenue (GGR) last year, bringing the figure up to $500.8 million.
According to the Hong Kong stock exchange filing on Wednesday, mass market revenues rose by seven percent to $129.7 million while revenues from electronic gaming machines increased by six percent to $145.5 million.
VIP earnings, however, only saw a one percent increase to $225.7 million.
The company’s net profit only rose by seven percent in 2016 to $184.2 million, with earnings before interest, tax, depreciation and amortization increasing by 12 percent to $256.1 million.
The firm said that NagaWorld would continue to see positive growth given Cambodia’s offering of three-year multiple-entry visas to Chinese, South Korean and Japanese tourists, coupled with the evolving business and tourism segment.
“Poised to benefit from this growth is NagaWorld, which is one of the main tourist destinations located in the city center of Phnom Penh and the entertainment center of the Mekong region,” NagaCorp Ltd. chairman Timothy Patrick McNally said in the filing.
Growth in 2016 was lukewarm compared to figures from 2015 as its GGR rose by 26 percent to $480.6 million. Its mass market rose by 33.4 percent to $257.7 million in 2015 while its VIP segments saw an 18.5 percent growth to $222.9 million.
NagaWorld last year also increased its payments of the monthly gaming obligations to the Ministry of Economy and Finance (MOEF), paying $410,987 last year compared to $365,322 in 2015. However the payment of non-gaming obligations remained unchanged at $214,338.
“During the year, having discussed with the MOEF, the group paid an additional obligation payment of $16,558,000 to the MOEF. Additional obligation payments [if any] are subject to future developments in this matter,” the filing read.
The filing also noted a 33 percent increase in non-gaming revenue to $30.7 million last year compared to $23.1 million in 2015. NagaWorld’s VIP rolling chip turnover, with a win rate of 2.6 percent, also jumped 11 percent to $8.71 billion last year.
“The 11 percent increase in VIP rollings during the year demonstrates the success of NagaWorld’s incentive program in promoting NagaWorld to a wider range of operators and players in the region.
“The group aspires to further penetrate the regional VIP Market, by offering attractive commercial terms to junket operators and agents as a result of NagaWorld’s low cost structure,” the firm said.
It added that the opening of NagaCity Walk last August, Phnom Penh’s very first duty-free shopping mall, also helped with the firm’s development and expansion of its VIP and mass market consumer segments.
The firm’s growth is expected to see a boost next year as the TSCLK entertainment complex is expected to open next year.
You already reacted to this news article