{"id":777018091,"date":"2024-08-13T09:52:27","date_gmt":"2024-08-13T12:52:27","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777018091"},"modified":"2026-04-22T07:12:12","modified_gmt":"2026-04-22T10:12:12","slug":"nagacorp-issues-profit-warning-due-to-vladivostok-project-impairment","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/nagacorp-issues-profit-warning-due-to-vladivostok-project-impairment","title":{"rendered":"NagaCorp issues profit warning due to Vladivostok project impairment"},"content":{"rendered":"\n

NagaCorp expects to record between negative US$6.9m and positive US$3.1m for the first half of the year.<\/p>\n\n\n\n\n\n\n\n

Cambodia.- NagaCorp has issued a company filing announcing that it expects to report a profit of between negative US$6.9m and positive US$3.1m for the first half of the year, compared to a profit of US$83m reported during the same period in 2023.<\/p>\n\n\n\n

The company attributed the anticipated decrease in profit or potential loss to an impairment on the company\u2019s Vladivostok gaming and resort project in Russia. The independent revaluation of this project, conducted by an external valuation firm, indicates an impairment ranging between US$85m and US$95m.<\/p>\n\n\n\n

“Such impairment was due to an increase in the discount rate used for the purpose of determining the project present value and the lower business volume expected to be generated from the Vladivostok Project,” the company said.<\/p>\n\n\n\n

NagaCorp said the group’s overall financial health remains stable. It said the impairment is non-cash and does not impact its operational cash flows. The company\u2019s interim results for the first half of 2024 are expected to be published by the end of August.<\/p>\n\n\n\n

S&P Global Ratings<\/a>\u00a0has maintained NagaCorp\u2019s B long-term issuer credit rating and updated the outlook of the company from negative to stable. The rating agency said NagaCorp’s risk of refinancing was reduced following the repayment of its outstanding senior unsecured notes in July 2024 but noted that gaming operations are unlikely to recover to pre-Covid-19 levels due to the elimination of Chinese junket operators, which accounted for about 70 per cent of gross gaming revenue (GGR) in 2019.<\/p>\n\n\n\n

NagaCorp\u00a0posted GGR of US$145m for the first quarter of the year, up 23.7 per cent when compared to Q1 2023.\u00a0Earnings before interest, tax, depreciation and amortisation (EBITDA) was US$80.3m, up\u00a033 per cent year-on-year.\u00a0GGR for Mass Market table games increased by 34 per cent. The key growth driver was premium mass high-limit table games, up 51 per cent in year-on-year terms.<\/p>\n","protected":false},"excerpt":{"rendered":"

NagaCorp expects to record between negative US$6.9m and positive US$3.1m for the first half of the year.<\/p>\n","protected":false},"author":176,"featured_media":25662,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"NagaCorp anticipates a significant profit decline or potential loss for H1 2024, ranging from negative US$6.9m to positive US$3.1m, primarily due to an US$85m-US$95m impairment on its Vladivostok project. Despite this non-cash charge, the company's Q1 GGR and EBITDA showed robust year-on-year growth, driven by premium mass segments. S&P Global Ratings maintained NagaCorp's B credit rating, upgrading its outlook to stable following debt repayment, though noting ongoing challenges from the absence of Chinese junket operators.","focusai_entities":"NagaCorp, S&P Global Ratings","focusai_location":"Cambodia, Russia, Vladivostok","focusai_target_profile":"ceo_executive (1.0), regulator (0.7), compliance_legal (0.7), operator_casino (1.0), marketing_crm (0.7), payments_fraud_aml (0.7), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Vladivostok Project Impact","query":"What specific geopolitical or market factors beyond the discount rate increase contributed to the significant impairment of the Vladivostok project, and what is NagaCorp's revised strategy for this asset?"},{"label":"Post-Junket GGR Recovery","query":"Given the sustained absence of Chinese junket operators, what specific strategic initiatives and market diversification efforts is NagaCorp implementing to achieve pre-Covid-19 GGR levels, particularly in the premium mass segment?"}],"footnotes":""},"categories":[157,16333],"tags":[2336],"class_list":["post-777018091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news","tag-nagacorp"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777018091"}],"version-history":[{"count":5,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018091\/revisions"}],"predecessor-version":[{"id":777018124,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018091\/revisions\/777018124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25662"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777018091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777018091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777018091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}