Supplier News
Cambodia – Nagaworld grows GGR by 24 per cent
By Phil - 21 February 2014
Cambodia’s leading casino; NagaWorld, has continued to generate strong operational and financial results with revenue increasing by 24 per cent to US$344.9m and net profit increased by 24 per cent to US$140.3m for the year ended 31 December 2013.
NagaCorp ChairmanTimothy McNally said: “The Mass Market continued to generate a high margin of 95 per cent and contributes a significant 73 per cent to the group’s total gross profit. The gross profit margin of the VIP Market increased from 37 per cent to 40 per cent driven by higher win rates in the overall VIP Market and better margins achieved by the overseas junkets incentive program. The VIP Market’s contribution to total gross profit also increased from 17 per cent to 22 per cent as a result of higher VIP Market revenue composition of 39 per cent.”
The positive results were attributed to higher business volume from the Mass Market and VIP Market, as well as improved margins from the VIP Market. International tourism grew by 5five per cent in 2013 to a record of 1.1bn travellers globally. In Cambodia, international tourist arrivals continued to outperform worldwide tourism growth by recording 4.2m visitors in 2013, an increase of 17 per cent in 2013 compared to 2012. The top three countries where visitors originated were Vietnam, China and Korea, which collectively accounted for 41 per cent of total tourist arrivals to Cambodia with a year-on-year increase of 16 per cent.
“The strong visitor growth from these gaming-centric countries continued to be an important driver of the Group’s business growth.,” Mr. McNally explained.
The group achieved a growth of 15 per cent in Public Floor Gaming Tables buy-ins and 10 per cent in Electronic Gaming Machines bills-in respectively. Both win rates and margins remained stable. On the back of successful premium mass gaming areas, namely NagaRock and Saigon Palace, the Group continued its strategy to segment the Mass Market and attract higher end public floor players. Aristocrat Private Club, a premium mass gaming area with 31 EGM and five gaming tables offering higher table limits, successfully ramped up since its opening in July 2013. These premium mass gaming areas continue to be well-received, with increasing visitations during the year. In addition, the Group also raised the minimum table bets on its normal public floor gaming areas towards the end of the year.
In the EGM segment, revenue increased by 16 per cent to US$101.9m as a result of higher bills-in. The number of EGM in operation at the end of the year increased from 1,470 to 1,543, as a result of additions in the Aristocrat Private Club and Saigon Palace.
The Group’s loyalty program, the Golden Edge Rewards Club, has been tracking well with increasing registration. As at 31 December 2013, the program successfully captured more than 34,500 members. This has allowed the Group to continue its efforts to understand its members’ profiles, create targeted marketing promotions and rollout player development initiatives to drive frequency of visitations.
NagaWorld is the only licensed casino in the capital city of Phnom Penh.
