NagaCorp Ltd, operator of NagaWorld, a casino resort monopoly in the Cambodian capital Phnom Penh, has announced that it recorded a 57.4 percent increase in net profit in 1H23, topping $83 million.
The company posted gross gaming revenue (GGR) of $252.3 million in the period, increasing 7.9 percent compared to 1H22.
According to the company’s results, released on Wednesday, the group also saw an improvement in EBITDA 1H23, up 10.1 percent to $143.2 million compared to the corresponding period last year.
The group notes that the positive results were mainly attributable to business volume growth across all business segments. “The average daily business volume for mass market continued to improve from $9.8 million for 1Q23 to $10.1 million for 2Q23, representing a sequential growth of 3.7 percent.”
Regarding VIP market, NagaCorp notes that average daily rollings in 1Q23 was $10.8 million, representing a 8.6 percent sequential growth to $11.8 million in 2Q23. And average daily rollings for the Referral VIP Market in 2Q23 was $6.1 million, representing a 40.9 percent sequential increase as compared to 1Q23.
In 2Q23, the average daily business volume of both the mass market and VIP market have recovered to 83.9 percent and 97.9 percent respectively, compared to FY2019. “Both the mass market and VIP market collectively contributed about 90 percent and 93 percent of the company’s total GGR and gross profit for the period respectively.”
In the same interim results, NagaCorp mentions that “Cambodia is showing a substantial recovery in its tourism sector.” For the period from January to May 2023, total international arrivals to Cambodia amounted to 2.2 million visitors compared to 2.9 million in the pre-pandemic period of January to May 2019. This represents a recovery rate of 75 percent.
Meanwhile, a majority of airlines have resumed direct flights to Cambodia. As of 17 July 2023, weekly international direct flights to Cambodia stood at 444, including 341 from Southeast Asia (including Korea and Japan) and 103 from Greater China cities. Based on this, “total direct weekly flights from Southeast Asia (including Korea and Japan) and Greater China have recovered to about 71 percent and 25 percent respectively compared to pre-pandemic in 2019.”
The group notes that Cambodia was removed from the “Money Laundering Grey List” of the Financial Action Task Force, “providing a positive sign for attracting investors and foreign capital inflows”.
“The move reflects the Cambodian government’s efforts in combating money laundering crimes, terrorist financing and the proliferation of illegal financing in Cambodia. Cambodia’s removal from the grey list will make it more attractive to foreign investors, attracting more foreign investment and facilitating the trade of local and international investors in all business sectors.”