NagaCorp reported an 85 percent gain in interim gross gaming revenue, driven by VIP visitation to its new Naga 2 property and strong growth in the mass market.
GGR hit $713.9 million, while EBITDA was up 29 percent to $232.7 million. VIP rollings increased by 117 percent to $16.8 billion, while mass market table buy-ins increased by 53 percent to $573.8 million.
Mass market EGM bills-in increased by 22 percent to $1.0 billion.
“The business volume growth is attributable to the increasing visitation at both Naga 1 and Naga2 as a result of the tourism growth into Cambodia, particularly from China which recorded 79 percent growth in the first four months of 2018,” it said in a stock exchange filing.
Net profit was $180.1 million, up 20 percent, but would have doubled if the company had removed the impact of $60 million in electronic gaming machine assignment rights recorded in 2017.
The company said it had seen minimal cannibalization from the opening of Naga 2, which is attracting a different clientele, while the original property has kept its patrons.
“Feedback from the players and junket operators is that Phnom Penh has come of age as an attractive location and preferred destination for operators and players coming from both South East Asia and East Asia, especially China,” the company said.
Naga, which holds a monopoly within a 200km radius of Phnom Penh, has begun an upgrade of Naga 1, which it expects to be completed in 2019.