NagaCorp has posted a loss of US$77.2m for the first half of the year, compared to a profit of US$20.6m in H1 2020.
Cambodia.- Casino operator and developer NagaCorp has shared its financial results for the first half of the year, posting a loss of US$77.2m.
NagaCorp’s earnings before interest, taxation, depreciation and amortisation (EBITDA) for the period was US$11.2m, compared with US$88.7m during the first half of 2020. Gross gaming revenue (GGR) reached US$129.3m, down 65.2 per cent year-on-year.
Company-wide revenue was US$130.4m, down 65.4 per cent from US$377.5m. GGR from the VIP market declined 70.3 per cent to US$80.5m while the mass-table segment was down 56.4 to US$29.9m.
NagaCorp’s electronic table game operations revenue was down 42 per cent to US$18.9m and hotel room income, including sales of food and beverages, declined 79.9 per cent from US$5.5m to US$1.1m.
The company paid US$11.6m in taxes for the first six months of 2021, compared to US$13.6m in the first half of 2020. NagaCorp had a casino tax bill of US$6.6m, a gaming obligation payment of US$2m and a monthly non-gaming obligation payment of US$214,338.
The company said it had cash and deposits amounting to US$275m and said it had “sufficient liquidity and cash reserves to fund cash expenditures during the voluntary temporary suspension of business operations.”
NagaWorld suspended operations in March after 11 staff members tested positive for Covid-19. The company has since announced close to 600 layoffs, a move that has been highly criticised by unions.
It is still unknown when NagaWorld will be allowed to reopen although authorities said it may be allowed to reopen in the fourth quarter of 2021 amid a rise in vaccination rates.
In June, NagaCorp completed an issue of US$200m in 7.95 per cent senior notes. The group had previously stated that after fees, commissions and expenses, the net proceeds would amount to US$211.6m.
Moody’s Investor Service Inc has predicted NagaCorp’s revenue will reach 40 per cent of 2019 levels this year but won’t see a full recovery until 2022. Analysts said the recovery will depend on a reopening of NagaWorld in the second half of 2021.