NagaCorp financials stable despite crisis

Q1 GGR increases 15 per cent to US$369 million driven by the VIP sector.

Hong Kong.- Gaming operator NagaCorp has released a statement to the Hong Kong Stock Exchange reporting “relatively stable” financial results in the first quarter of 2020 despite the Covid-19 outbreak.

The operator reported a 15 percent year-on-year increase in GGR to US$369million, mainly driven by the VIP sector.

NagaCorp said the positive numbers were mainly due to it being able to operate without restrictions in the first quarter of the year.

“The results of 2020Q1 are mainly contributed by VIP business. The gross gaming revenue for VIP business increased by 25% and rollings increased by 18%, generated mainly from players coming from North Asia and some from South East Asia. The increase in revenue and rollings is contributed partly by junket operators who have fixed based operations in Naga 2 and who brought in VIP players (mainly from China) especially during the times when casinos are closed in Macau, Philippines and Malaysia at various points of time.”

The company added: “before March 30, 2020, Cambodia was the only country where its border was relatively porous to Chinese’s visitation without much restrictions; NagaWorld was the only casino in the Asia Pacific region where there was relative ease of entry to the casino without much administrative difficulty and yet having all the protective measures against the Covid-19 in place both at the level of Cambodia and at the level of the company.”

However, since April 1 the Cambodian government has ordered a suspension of all casinos until further notice.

“If the Cambodian government is able to contain the spread of Covid-19, the company is expected to continue its trajectory of growth in the short term especially now the Covid-19 spread is quite well contained in China. Nonetheless, the company believes the long term prospects and outlook shall remain stable,” the statement concluded.