NagaCorp Ltd, the operator of the renowned NagaWorld casino resort in Phnom Penh, Cambodia, has disclosed impressive financial results for the first quarter of 2024.
The company showcased a remarkable 23.7 percent surge in gross gaming revenue (GGR) compared to the corresponding period last year, totalling over $145 million (€133.7 million).
Robust financial performance
In an announcement made to the Hong Kong Stock Exchange, NagaCorp revealed its preliminary unaudited consolidated management figures, highlighting a substantial increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) for 1Q24, reaching $80.3 million (€74 million). This represents a notable 33 percent rise compared to the first quarter of 2023.
Recovery and exceeding pre-COVID levels
The Hong Kong-listed company attributes its buoyant performance to the steady recovery of business volumes, particularly in the mass segment, which has rebounded to 86.6 percent of pre-COVID levels. Notably, the premium VIP segment has not only recovered but surpassed pre-pandemic levels, signalling a robust resurgence in high-end gaming activities.
Contributing factors to growth
The growth trajectory of NagaCorp’s mass segment has been predominantly fuelled by strong performances in mass table games, which witnessed an impressive 34 percent GGR growth in 1Q24 compared to the same period in 2023. Furthermore, the premium mass high-limit table games emerged as a pivotal growth driver, boasting a remarkable 51 percent GGR increase in the first quarter of 2024.
Exceptional performance of VIP segment
NagaWorld’s premium VIP segment continued to deliver outstanding results, with GGR soaring by 24 percent in the quarter under review. Particularly noteworthy is the surpassing of average daily rollings in 1Q24, which exceeded the pre-pandemic business volumes recorded in the financial year ended December 31, 2019, underscoring the segment’s resilience and sustained growth momentum.
Recovering from debt
NagaCorp has demonstrated confidence in its capacity to address and overcome its outstanding debt, notwithstanding apprehensions raised by certain analysts.
In the previous year, Moody’s Investors Service deemed the US$80 million (€73.8 million) shareholder loan provided to NagaCorp by its controlling shareholder, Tan Sri Dr. Chen Lip Keong, as a “credit positive” development for the company.
