Hong Kong listed casino operator NagaCorp says it expects all four of Macau’s “mega junkets” to be operational at its flagship Cambodian IR NagaWorld as the company’s gaming stocks continue to soar.
NagaWorld saw gross gaming revenue rise 55% to US$1.4 billion and profit by 53% to US$390.6 million for the year ended 31 December 2018, with VIP roll up 69% to US$35.66 billion and revenue 71% to US$1.07 billion.
Discussing the property’s continued ramp since the opening of Naga2 in December 2017, NagaCorp described the increase in VIP business volume as being due to “an increase of business at the combined NagaWorld complex, in particular at Naga2 where there has been customer demand for higher table limits and increased rollings.”
In particular, NagaCorp pointed to an agreement signed with Macau’s leading junket operator Suncity Group to set up a fixed base business operation with fully-fledged office facilities in Phnom Penh in March 2018, adding that Suncity operations in Naga2 will be moved to a larger and “more desirable” location this quarter.
“The group expects all top four Macau mega junkets will operate in Naga2 by 2019,” it said. “These junkets contributed 70% of Macau’s total VIP rollings. Despite the significant increase in VIP business volume, VIP customer composition remains well diversified between South East Asia and North Asia.”
Mass table drop and revenue both increased by 57% to US$1.24 billion and US$235.7 million respectively for the year, while EGM revenue was down 14% to US$129.3 million.
The group reported a 31% increase in non-gaming revenue for the year to US$39.9 million, primarily contributed by an increase in room nights sold with the opening of Naga2 and better performance across all the F&B outlets in line with an overall increase in visitation.