GGRAsia – NagaCorp’s net profit up by 27 pct in 2015

NagaCorp’s net profit up by 27 pct in 2015

Feb 02, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck

Cambodia casino operator NagaCorp Ltd posted a net profit of US$172.6 million for 2015, up by 26.8 percent from the previous year. Revenue for the period increased by 24.6 percent year-on-year to US$503.7 million, the firm said in Monday in a filing to the Hong Kong Stock Exchange.

The casino operator reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$228.5 million, up by 30 percent from the prior-year period.

The operator of NagaWorld (pictured), the only casino resort in Cambodia’s capital Phnom Penh, said gross gaming revenue (GGR) increased by 26 percent year-on-year to US$480.6 million in 2015. That included revenue of US$257.7 million from mass-market play, up by 33.4 percent year-on-year, and US$222.9 from the VIP segment, an increase of 18.5 percent.

NagaWorld’s VIP rolling chip turnover for 2015 jumped 27.3 percent from a year earlier to about US$7.9 billion, with a win rate of 2.8 percent, the firm said.

NagaWorld had in place 287 gaming tables – including 200 VIP tables – and 1,656 electronic gaming machines (EGMs) at the end of 2015.

Revenue from electronic gaming increased 61.8 percent year-on-year to US$136.8 million. The higher figure includes a negotiation fee of US$40 million paid by a group of investors that is working with NagaCorp to operate a new electronic games business at NagaWorld.

“The positive results were attributable to the increase in business volume across all segments of the gaming business,” said the Hong Kong-listed company in Monday’s filing.

NagaCorp said the continued downturn in the gaming sector in Macau “offers opportunities for the group to further penetrate the regional gaming market of both the VIP and mass market, by offering better commercial terms to junket operators and agents as a result of NagaWorld’s low cost structure”.

Macau’s accumulated casino GGR for the full year of 2015 declined by 34.3 percent compared to 2014.

NagaCorp said it continued to sign new agreements with junket operators during 2015. A unit of Jimei International Entertainment Group Ltd – a Hong Kong-listed casino junket investor with its roots in Macau – in June announced a deal to operate at least seven VIP gambling tables at NagaWorld.

NagaCorp proposed a final dividend of US$0.0189 per share, to be paid on May 10. The firm recorded an annual decline in share price of 23 percent for 2015. Its stock, listed in the Hong Kong Stock Exchange, closed the year trading at HKD4.90 (US$0.63) per unit.