Operator News
Cambodia – NagaWorld’s gaming revenue up 28.5 per cent so far in 2019
By Phil - 4 October 2019
NagaCorp ‘continued its journey of growth’ with NagaWorld in the Cambodian capital of Phnom Penh enjoying a 28.5 per cent surge in its GGR during the first nine months of the year.
Revenue has come in at US$1.29bn, marking a 20 per cent increase, whilst net gaming revenue increased by 28.5 per cent to US$616.3m for the nine months to September 30.
The company highlighted Cambodia’s ‘political stability, increasing FDI, investment activities and business-related visitation to Cambodia’.
It said: “ International business-related travel from South East Asian countries into Cambodia also grew rapidly, with visitation from Malaysia, Thailand, Indonesia and Singapore increasing by 60 per cent, 23 per cent, 86 per cent and 28 per cent, respectively, which has helped increase visitation to NagaWorld, resulting in ‘improved business volume growth, in particular the mass market business.’
NagCorp is confident that new casino legislation will boost GGR further. “It is expected that the much-anticipated casino law, due to be promulgated by early 2020, which, coupled with the Cambodian government’s recent ban of online gaming, will further strengthen the regulatory environment and governance framework which has been improving in recent years.’
The mass market has been the key focus for the group. Mass market buy-ins have increased by 38 per cent, and revenue increased by 42 per cent.
A spokesperson said: “NagaWorld continued to benefit from visitation and tourism growth in Cambodia, and continued to underpin the visitor headcount growth at the combined NagaWorld complex. Average daily foot traffic and customer’s spending at the combined NagaWorld complex continue to grow in line with the increasing visitation to Phnom Penh city. These have contributed positively towards the business volume growth of the group’s mass market segment.”
VIP rollings increased by 35 per cent. “The increase in VIP business volume was driven by the continued influx of business visitation, tourists and increased footfall to NagaWorld complex, in particular Naga 2 where there has been customer demand for higher table limits,” the spokesperson added. “ Two reputable Macau-based junket operators have set up fixed-based operations and commenced bringing in VIP players to NagaWorld in the current period. VIP customers remain well diversified coming from South East Asia and North Asia, with increasing headcounts and check-ins originating from Chinese business visitation. For the business of the incentive market, the management of the Group continues to adopt a more conservative gaming policy of adopting a more balanced profit-formula with overseas operators.”
NagaWorld will see even more expansion with Naga 3 to be a mix of gaming and non-gaming, is expected to comprise of two 66-storey hotels, two 45-storey hotels, one 48-storey condominium hotel, one three-level basement and an 11-level multi-entertainment podium.
