Operator News

Cambodia – Naga World benefits from the return of Chinese players and the referral VIP market

By Phil - 4 April 2023

Cambodian operator Naga Corp reported a 6.8 per cent improvement in revenues in its first quarter due to the return of Chinese players and an upturn in the referral VIP market with players from Thailand, Malaysia and Singapore.

Average daily business volumes for the Mass Market in the first quarter of 2023 increased by 16.8 per cent as compared to the same period last year. This represents a 2.4 per cent increase as compared to
the fourth quarter of 2022. Average daily rollings for the Premium VIP Market in the first quarter of 2023 showed a 43.9 per cent increment as compared to the same period last year. This represents a 48.6 per cent increase as compared to the fourth quarter of 2022.

Average daily rollings for the Referral VIP Market in 1Q2023 showed a 117.9 per cent increment as compared to the same period last year. This represents an increase of 22.6 per cent as compared to the fourth quarter of 2022. Gross Gaming Revenue (GGR) in 1Q2023 of US$117m showed a 6.8 per cent year-on-year growth.

The company stated: “This is because the win rates in 1Q2023 were generally lower as compared to last year due to luck factor. Earnings before Interest, Tax, Depreciation and Amortization in 1Q2023 of US$59m is almost flat as compared to the first quarter of 2022 due to an increase in staff cost and luck factor.”

“The management observed a continuing increase of visitation to our property, especially Chinese visitors in March 2023 after the Chinese Government allowed tour groups to Cambodia since February 2023,” it added. “The number of direct weekly flights coming from Greater China to Cambodia increased from 35 as at 2 January 2023 to 114 as at 1 April 2023, which represents a 225.7 per cent increase. The estimated daily visitation to our property also climbed to about 7,000 towards the end of March 2023, up from 6,000 at the year-end of 2022. Our hotel occupancy has also recorded the highest occupancy rates in March 2023 since January 2021.”

The results could have been better too had the casino floor played a little luckier. Average daily business volumes for the Mass Market in 1Q2023 have already achieved the highest levels since the first quarter of 2020. However, the win rate of the Mass Tables in the frst quarter of 2023 of 16.8 per cent was lower than that for the same period last year of 19.6 per cent due to luck factor.

Naga Corp stated; “The differential in the win rate accounted for the US$7.7m drop of Mass Tables GGR. The management believes that the Mass Tables win rate may be improved in the coming months. The win rate of the EGM remains about the same as that for the same period last year.”

The company also observed an accelerated growth in our Premium VIP Market.

“This may be due to our successful conversion of previous referral VIP players into direct Premium VIP players,” Naga Corp said. “Together with the continued recovery of international arrivals and the improving business environment in Cambodia, the Premium VIP business reported 43.9 per cent YoY growth of the average daily rollings. The average daily rollings of Premium VIP Market in 1Q2023 have already recovered by 90.2 per cent compared with FY2019 (peak pre-COVID-19 year). Indeed, the average daily business volumes for the Premium VIP Market in 1Q2023 have also achieved the highest levels since the first quarter of 2020.”

“The average daily rollings from the Referral VIP Market in the first quarter of 2023 rose by 117.9 per cent year-on-year growth. The company witnessed the increasing headcounts of the Referral VIP Market especially from our neighbouring countries such as Thailand, Malaysia and Singapore. Win rate has also improved from 2.4 per cent in 1Q2022 to three per cent in 1Q2023. We will continue to develop the Referral VIP Market by identifying and recruiting more reputable referral VIP agents.”