Cambodia Casino Operator NagaCorp Sees Rising Profits Due to Macau Difficulties

Cambodia’s largest hotel & gaming operator NagaCorp recently unveiled to the public its financial performance for 2015. Last year was particularly favourable for the company which recorded a a strong financial performance. NagaWorld, the company’s flagship in Cambodian capital Phnom Penh experienced improved performances in all its gaming segments, recording an increase of 27% in net profit when compared to the previous year, bringing its revenue to a total of $172.6 million.
The company reported gross gaming revenue (GGR) of US$480.6 million, a growth of 26% over 2014. Much of the growth occurred in the mass market segment, where gross gaming revenue increased by 33.4% to $257.7 million. 

Much of the growth is due to encouraging tourist numbers and operational changes to the gaming area, which attracted more players. New rules in the public area allow now players  to buy-in at the public tables rather than having to go to the cashier.

Cambodia ripped also indirectly the benefits of a tightening of visiting rules for Mainland Chinese to Macau. Mainland Chinese VIP gamblers are now seeking out alternate locations to gamble. Cambodia, the Philippines or Vietnam appear as attractive gambling places instead of Macau.  NagaCorp VIP segment-calculated in VIP rolling chips- rose to $7.9 million in 2015, up by 27% over last year. By comparison, Macau gambling revenues decline last year in the Chinese enclave by a third.

The Chinese market is likely to further contribute to NagaCorp rising profits in 2016. More flights are now operated between China and Cambodia while a new luxury shopping gallery “NagaCity Walk” will boost the appeal of the Phnom Penh complex by the end of the year.