In 2018, a record business was done by an eminent casino operator, NagaCorp from Cambodia. This huge success is owed to his stanch gambling strategies coupled with wide-range Phnom Penh operations.
Financial report of 2018 by NagaCorp just came out this Wednesday. It shows the net increase in profit of 53% to US$390.6m, gaming revenue of 55% to US$1.4b whereas the earnings rose to 60% to $511.8m.
According to NagaCorp, had they not spent $60m on issuing license to investors for Electronic Gaming Machines, they would have made a profit of 100%. NagaCorp said despite of “ready
demand” they did not renew the right.
Owing to inauguration of Naga2 in Phnom Penh in addition to its flagship NagaWorld property, Company generated the VIP revenue of 71% to $10.7b and rose gambling turnover to 69$ to
$35.7b. The opening of Naga2 raised the table limits also.
Suncity Group, Tak Chun Group announced major projects with NagaWorld, NagaCorp and Naga2 and the company had also made announcements regarding the widening of horizons of
their company by bringing in more desirable features.
NagaCorp deems the opening of Naga2 as “minimal cannibalization, due to limiting of old customers to Naga1 and new attractions towards Naga2. This trend is measured by mass market tables with figures of buy-ins and revenue of 57% to $1.24b and $235.7 respectively.
Non-renewal of $60m licensing deal lead to the 14% per year decline of revenue yet the market shows a profit of 22% to $2.21b. In 2018, tourism trend in Cambodia from China adds to the
credit by rising of visits up to 69% in 11 months.
Although the segment rose to 31% to nearly $40m last year, the non-gaming revenue surpasses comparatively.
In 2017, the net trade receivable of NagaCorp rose to $75m from $58.3m but it strictly follows to credit policies. Despite of dept of $2.2m in 2018 it is still low as compared to some Asian casino
NagaCorp is regarded as best performing gaming stock of 2018, by Union Gaming’s Grant Govertsen and he expects the same trend in 2019 too because of Naga2. He has high hopes from the company as the year proceeds.