Hong Kong-listed NagaCorp has proposed to issue shareholders a special bonus for the first time in its 25-year history after recording a 20% increase in gross gaming revenue to US$1.72 billion and 33% rise in net profit to a record US$521.3 million at Cambodian integrated resort NagaWorld in 2019.
Publishing its Full Year results overnight, NagaCorp said the decision to issue a special bonus had been made despite the company anticipating some negative financial impact in the coming months as a result of the Coronavirus, noting that the long-term prospects at NagaWorld remain solid.
“Regardless of the Coronavirus outbreaks, which the Company is of the opinion that this event will be short-lived, the Company is pleased to recommend a 80% payout of the net profits generated for the second half of 2019 as final dividend and payment,” NagaCorp said in a filing. “Accordingly, a final dividend for the shareholders of the Company of US5.09 cents per share has been proposed.
“This is the first time after operation of the Group for 25 years that the Company has decided to recommend to declare a special ‘bonus’ to all of its shareholders.”
Continuing its record of strong growth since the opening of Naga 2 in late 2017, NagaCorp reported a 31% year-on-year increase in EBITDA through 2019 to US$671.7 million on the back of gains across all gaming segments.
VIP continued to lead the way, with rolling chip volume up 31% to US$46.61 billion and win up 16% to US$1.24 billion.
Mass table games saw a 33% increase in buy-ins to US$1.64 billion with revenue rising by 35% to US$318.3 million, while EGM bills-in grew 25% to US$2.76 billion with win up 22% to US$158.1 million.
“This business volume growth was attributable to the increasing visitation at both Naga 1 and Naga 2 as a result of tourism growth into Cambodia, particularly from China which recorded 20% growth in the first 11 months of 2019,” NagaCorp said.
The company added that hotel room revenue had also grown by 7% in 2019 to around US$16 million, despite the temporary closure of 250 hotel rooms at Naga 1 for upgrade works. Naga 1’s occupancy rate reached 84% in 2019, up from 75% in the previous year.