NagaCorp Records $145M Gross Gaming Revenue For Q1 2024
NagaCorp, the operator of NagaWorld, the biggest casino resort in Cambodia, has announced that its gross gaming revenue (GGR) for the first three months of 2024 (January to March) reached over USD $145 million, a 23.7 per cent increase compared to the same period in 2023.
In a report for the Hong Kong Stock Exchange released on April 3, 2024, NagaCorp disclosed its preliminary unaudited consolidated management, noting that its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) in 1Q2024 reached USD $80.3 million, 33 per cent higher than recorded in 1Q2023. Operational highlights from the report:
- Mass Market – Average Daily Business Volumes recovered to 86.6 per cent of pre-pandemic levels
- Premium VIP Market – Average Daily Business Volumes exceeded pre-pandemic levels
- Referral VIP Market – Higher revenue was recorded
According to the report, NagaCorp's Mass Market segment's continued growth trajectory was mainly driven by Mass Market table games, which recorded a GGR growth of 34 per cent in 1Q2024 compared to 1Q2023.
“Premium mass high limit table games remain the key growth driver, with GGR increasing by 51 per cent in 1Q2024 compared to 1Q2023,” stated NagaCorp. “In addition, the average daily business volumes recorded for the Mass Market in 1Q2024 are the highest since the reopening of the property in the third quarter of 2021.”
The Premium VIP Market’s GGR continued to register positive growth, recording an increase of 24 per cent in 1Q2024 compared to 1Q2023.
The report also noted that average daily rollings in 1Q2024 have exceeded the average business volumes recorded back in the financial year ending on December 31, 2019.
“In addition to the recovery of international tourist arrivals, the continuing return of business-related travellers (with longer repeated stays and higher spending power) to Cambodia contributed to the growth of this segment,” the report stated. Referral VIP Market GGR reported a year-on-year growth of 47 per cent in 1Q2024 as the market continues to recover.
NagaCorp’s Ongoing Loan Repayment
The report also stated that NagaCorp’s total cash and bank balances have further increased to USD $414.3 million as of March 31, 2024. As previously reported, in October 2023, the bond credit rating agency Moody’s Investors Service stated that NagaCorp required USD $135 million to repay maturing bonds.
However, the company expressed confidence in its ability to fully repay the outstanding notes before July 2024. A loan of up to USD $80 million was extended to NagaCorp by its controlling shareholder in a loan agreement dated October 17, 2023. This will serve to partially discharge the outstanding 7.95 per cent senior notes issued by the company, amounting to USD $472.2 million upon maturity on July 6, 2024.
In 2023, NagaCorp also announced a four-year delay in the completion of its USD $3.5 billion NagaWorld complex expansion known as ‘Naga 3’, effectively extending the deadline for this project to September 2029.