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Cambodia – Mass and premium play drive 99 per cent increase in NagaWorld’s GGR

By - 13 February 2023

The Cambodian integrated resort NagaWorld, owned by NagaCorp, experienced a 99.5 per cent jump in GGR to US$445.9m in 2022, driven by a spectacular rebound in the mass market gaming sector.

Net Profit came in at US$107.3m, reversing a loss of US$47m in 2021, with EBITDA surging from US$15.6m to US$245.4m. During the year, the Premium Market segment saw a 141.7 per cent increase in rollings to US$2.9bn, with a win rate of 3.8 per cent. This translated into a 87.8 per cent increase in Premium Market revenue to US$91.4m during the year. The referral VIP Market business volumes and revenue declined mainly due to the restrictive cross-border travel policies in the Asian region. However, Referral VIP Market business volumes on average daily basis increased by 31 per cent from US$2.9m for 1H2022 to US$3.9m in 2H2022 as the number of international direct flights to Phnom Penh continues to recover.

NagaCorp stated: “The company continued to see growth trajectory in its business recovery during the Year and reported significant YoY growth for key financial metrics. Both Net Profit and EBITDA increased by 173 per cent and 1,476.6 per cent respectively YoY with gradual reopening in ASEAN and continued stringent cost control measures, resulting in a higher profit margin. Net Gaming Revenue and Gross Profit also grew by 152.9 per cent and 161.9 per cent YoY respectively.

“Given the company’s key focus on the Mass Market segment, NagaWorld continued to benefit from the reasonably sized domestic captive market in Cambodia, as well as stable visitation to the property during the Year. The overall steady business recovery also has been supported by the gradual recovery of Cambodia tourism and visitation to the property in line with the easing of travel restrictions regionally.,” it added.

Since the company resumed its business operations in late 2021, the average daily business volumes for Mass Market and Premium Market in FY2022 have recovered by 76.8 per cent and 66.7 per cent respectively compared to FY2019 (peak pre-COVID-19 year). Both Mass Market and Premium Market collectively contributed about 94 per cent of company’s total gaming revenue in FY2022.

The operator explained: “This steady recovery of gaming business volumes reflects the resiliency of our earnings in spite of a challenging operating environment.”

The group continues to focus on the execution of its development of Naga 3 project. It is expected
that the combined complex of NagaWorld (Naga 1, Naga 2 and Naga 3) will have approximately
5,000 hotel rooms, 1,300 gaming tables, 4,500 EGMs and many other non-gaming attractions.
Approximately 93 per cent of Naga 3’s gross floor area will feature non-gaming offerings, which is in line
with the Group’s long term strategy of offering a comprehensive suite of lifestyle products and
services. Naga 3’s long term strategy is the continuation of Naga 2’s success. The Company is
committed to developing and completing the Naga 3 project to stimulate and enhance Cambodia’s
tourism industry. Given the uniqueness of its casino monopoly in the heart of a capital city, the combined complex of NagaWorld is expected to position the Group as one of the most sizable riverine integrated resorts and entertainment centres in the Asia Pacific region

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