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NagaCorp gaming revenue grows 85% in 2017

Wednesday, 07 February 2018 05:54
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Hong Kong-listed casino operator NagaCorp has seen gross gaming revenue at its Cambodian integrated resort NagaWorld grow 85% to US$926 million in 2017, bolstered by a 177% increase in VIP revenue to US$625.3 million.

NagaWorld saw VIP rolling chip grow 142% for the 12 months to 31 December 2017, rising from US$8.7 billion a year earlier to US$21.1 billion – an increase it attributed to “increasing market confidence in NagaWorld as an integrated gaming and entertainment destination.”

Mass market table game revenue grew 15% to US$149.7 million with EGM revenue up 4% to US$150.9 million, both segments negatively impacted by bad luck given buy-ins increased by 28% and 21% respectively. Company EBITDA grew 25% for the year to US$319.7 million while net profit increased by 39% to US$255.2 million.

Detailing the solid performance of the company in 2017, NagaCorp said, “The growth in business volumes and GGR is attributable to a number of factors. First, continued confidence in the political climate and social order of Cambodia’s operating environment, leading to favorable economic conditions and increasing visitation, especially from China.

“Second, confidence in the economic climate leads to increasing economic activity, resulting in increasing number of investors and a growing expat population in Phnom Penh; driving footfall to NagaWorld.

“Third, as a result of the completion of Naga2 (soft-opened in November 2017), the company’s balance sheet has strengthened. In July 2017, the group’s property assets were valued at US$5.4 billion by Colliers International (Hong Kong) Limited, while the group remains debt-free. As a consequence of the strengthening balance sheet, players are expressing more confidence, checking in more money, placing higher bets and generating a significant increase in business volume, especially in the VIP Market where rollings increased by 142%.”

NagaCorp announced a final dividend for shareholders of US$0.145 per share to be paid on 17 May 2018.

 

 

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