Cambodia – NagaWorld sees VIP increases drive daily volumeBy Phil - 7 October 2022
NagaWorld, in the Cambodian capital of Phnom Penh, has seen average daily business volumes for all three business segments continuing to show positive growth in the third quarter of 2022 as compared to the average daily business volumes in the first half of 2022.
Overall, the business volumes for the nine months ended 30 September 2022 remain in a relatively stable upward trend. Driving the increase was ‘referral VIP’ which daily rolling revenues of US$4.2m up 43 per cent from the first six months of the year. Premium mass increased 6.2 per cent to US$8.6m while mass market generated daily table buy-ins and EGM bill-ins of US$9.5m, up 5.1 per cent on 1H22.
The operator said: “Despite business volumes across all segments maintaining a steady upward trend for the nine months ended 30 September 2022, daily EBITDA of the Group in 3Q2022 was adversely impacted by lower win rates compared to 1H2022. The win rates in 3Q2022 for all segments of the Group’s gaming business were broadly lower compared to normalized win rates, as well as compared to 1H2022. Daily administrative and operating overhead of the Group in 3Q2022 remained steady compared to 1H2022. The Group’s management believes that win rates should normalize with less volatility in the long run as the base of our business volumes continue to grow.”
“Management believes the steady business recovery is mainly due to the continued improvement of international arrivals to Cambodia as more regional countries eased travel restrictions, as well as continued improvement of the business environment boosted by Chinese investments, post pandemic. According to the latest report issued by the Ministry of Tourism of Cambodia, total international tourist arrivals increased by 720.2 per cent to 998,272 visitors in the first eight months of 2022. Among them, 33 per cent arrived via Phnom Penh International Airport and 22.3 per cent were business-related travellers. In addition, MOT lifted its target to 2m international tourists for 2022, up from an earlier forecast of 1m. On top of tourism, Cambodia also benefited from the Cambodia-China Free Trade Agreement which went into force at the beginning of 2022. As per a report from the Council for the Development of Cambodia, China contributed 43 per cent of total fixed asset investments in Cambodia of US$2.99bn in the first six months of 2022. The Ministry of Commerce of Cambodia expects the bilateral trade growth with China (their largest trading partner) to be higher in coming years. Trade volume between Cambodia and China surged by 19.7 per cent to US$5.98bn in the first half of 2022.”