NagaCorp halts development of Russian gaming resort

The company had a gaming and resort project in Vladivostok, Russia.
The company had a gaming and resort project in Vladivostok, Russia.

NagaCorp has announced it will indefinitely suspend the development of a gaming resort in Vladivostok.

Cambodia.- NagaCorp has announced that it has decided to suspend the development of its US$150m casino resort in Vladivostok indefinitely “until the circumstance is clearer.” The board of directors of NagaCorp said the decision was taken in the interest of the company and its shareholders due to uncertainties surrounding the gaming and resort project.

Last August, NagaCorp had announced it had chosen a Russian contractor to resume building work on its casino resort. It was also looking for another contractor for outdoor engineering and landscaping works. The company invested US$84m in the development of the Naga Vladivostok first phase.

The Vladivostok venue was expected to include a multi-purpose facility measuring 21,500 square feet. There are currently two casinos operating in the Primorye Gambling Zone in Russia. The first resort in the zone, Summit Ascent’s Tigre de Cristal, opened to the public in 2015. 

It was followed almost five years later by Shambhala, which opened at the height of the coronavirus pandemic.

Moody’s expects recovery in NagaCorp’s operating performance in 2022

Moody’s Investors Service has reviewed NagaCorp’s outlook, finding that the company’s “B1” credit rating reflects the “dominant position” of its NagaWorld casino resort in Phnom Penh, Cambodia.

Analysts predict a recovery in NagaCorp’s operating performance in 2022 following the reopening of its casinos in September 2021 and further easing of pandemic-related restrictions given Cambodia’s vaccination rate.

The casino operator shared its operating results for the financial year ended 31 December 2021, reporting gross gaming revenue (GGR) of US$223.5m. NagaCorp reported earnings before interest, tax, depreciation and amortization (EBITDA) of US$15.6m and Adjusted EBITDA of US$22.4m. 

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