Stable growth in the Cambodian economy helped NagaCorp, operator of NagaWorld, the entertainment centre of the Mekong Region in the Cambodian capital Phnom Penh, increase its GGR in the first half of the year by 40 per cent to US$386.8m.
EBITDA increased 19 per cent whilst net profit increased by 20 per cent to US$150.6m. The increase was driven by a 71 per cent increase in VIP Rollings and a 23 per cent increase in Mass Market table buy-ins. Mass Market electronic gaming machines bills-in increased 15 per cent.
NagaWorld had 239 gaming tables and 1,660 Electronic Gaming Machines (“EGM”) in operation.
A spokesperson for NagaCorp said: “The strong growth in business volumes and GGR is attributable to a number of factors. First, continued confidence in Cambodia’s political climate and social order of Cambodia’s operating environment leads to favourable economic conditions. Second, confidence in the operating environment leads to increasing economic activity, investment and visitation, especially from China. Third, with the completion of Naga2, the company’s balance sheet has strengthened (in March 2017, the Group’s property assets were valued at US$5.4bn by Colliers International (Hong Kong) Limited) and players are expressing more confidence.”
International arrivals to Cambodia, one of the Group’s business growth drivers, increased 13 per cent to 2.3m visitors in the first five months of 2017. Visitor arrivals via Phnom Penh International Airport grew 19 per cent over the same period. Further, visitation from China grew by 36 per cent to 0.4m visitors, surpassing Vietnam to become the top source of arrivals to Cambodia.
The group added: “The continued growth of visitation to Cambodia is a reflection of the development of Cambodia as a prominent regional tourism and investment destination, brought about by continued political and social stability in the country. NagaWorld, which is a major attraction located in the city centre of Phnom Penh and the entertainment centre of the Mekong region, is poised to benefit from this growth. As the Group continues its trajectory of asset (in March 2017, the Group’s property assets were valued at US$5.4bn by Colliers International and business growth, it is also gaining increasing prominence and confidence among the gaming and entertainment community in the region. This allows the Group to further penetrate into new markets, thereby fuelling business growth and expansion.”