Strong top-line aided by increased visitations prompted NagaCorp Ltd to report a net profit of $52.7 million for the second quarter of 2022, when the company had posted net loss of $77.2 million during the same quarter in previous year.
The Cambodia-based operator continued to see business recovery and generated positive operational and financial results for shareholders during the six months ended 30 June 2022 with a net profit of US$52.7 million and gross gaming revenue (GGR) of US$237.4 million.
Net revenues of the company for the quarter grew 86 percent on a YoY basis at $243 million from $130 million, largely due to increased visitations, of which 29 percent were international business-related travellers.
Despite the travel and tourism sector remaining subdued globally, Cambodia received a total of 343,464 international arrivals in the first 5 months of 2022, representing an increase of 275.0% compared to last year.
Of this total, 99,831 visitors were international business-related travellers.
“This steady flow of international arrivals into the country also provides increasing foot traffic into NagaWorld,” the company report read.
Increased visitations aided strong top-line which in-turn reflected on the Gross profits of the company for the second quarter which almost grew three-fold on a YoY basis at $192 million from $68 million.
A significant decline in finance costs and income tax also aided to the strong bottom line of the company in the quarter which ended on June 30.
The Company continued to see sequential quarterly growth in business recovery for the three months ended 30 June 2022 compared to the three months ended 31 March 2022 across all business segments.
The Mass Market segment has been a key focus of the Company’s strategy and has continued to benefit from the sizable captive domestic expatriate community in Phnom Penh.
Despite softer tourism arrivals due to travel restrictions globally, visitation to NagaWorld was still relatively stable during the Period.
“The average daily net gaming revenue (NGR) of the Mass Market segment continued to improve from US$856,000 in 1Q2022 to US$897,000 in 2Q22, representing approximately 4.8% growth sequentially,” the company report read.
Meanwhile, for the Premium Mass segment, the average daily NGR in 1Q2022 was US$212,000, representing approximately 8.0% sequential growth to US$229,000 in 2Q22.
In aggregate, the total average daily NGR in 2Q22 was US$1,17 million representing an approximately 7.9% sequential growth compared to 1Q22.
The relatively stable performance was also attributed to the gradual recovery of visitation from neighbouring countries in line with regional borders reopening.