NagaWorld GGR to grow 26% in 2024, analysts say

Analysts cite an improved mix of business travellers with higher spending power.

Cambodia.- Casino operator and developer NagaCorp is expected to see a 26-per cent year-on-year increase in gross gaming revenue (GGR) in 2024, according to a report by China International Capital Corporation (CICC) Hong Kong Securities. The upswing is based on potential overseas demand, particularly from Chinese tourists.

Analysts Goh Shengyong, Wang Jiayu, and Hou Liwei note that the figure will represent less than half of the overall GGR recorded in 2019, before the Covid-19 pandemic. According to CICC, NagaWorld’s mass GGR will recover to 92 per cent of its 2019 level, driven by continued Chinese tourism and an improved mix of business travellers with higher spending power.

Analysts also suggest a potential recovery in VIP GGR to 37 per cent of 2019 levels, mainly supported by a revival in the regional junket industry and increased spending power within the Association of Southeast Asian Nations (ASEAN) region. 

See also: Southeast Asia tourism rebound to continue in 2024, analysts say

The brokerage highlights a correlation between foreign direct investment from China into Cambodia and GGR levels at NagaWorld. In 2022, Nagacorp’s GGR grew 99.5 per cent on year-on-year terms to US$445.9m. Earnings before interest, tax, depreciation and amortization (EBITDA) reached US$245.4m and net profit US$107.3m.

For the first half of 2023, the casino operator posted a GGR of US$252.3m, up 57.4 per cent when compared to H1 in 2022. Net Profit was up 57.4 per cent to US$83m in year-on-year terms while EBITDA was US$143.2m, 10.1 per cent higher than in the prior-year period.