NagaCorp hopeful of satisfying financial commitments thanks to NagaWorld improvements

Since its cash resources have improved as a result of improving circumstances at NagaWorld, its integrated resort in Cambodia, NagaCorp is optimistic that it will be able to satisfy its financial commitments when its senior notes expire in July 2024.

The Hong Kong-listed firm recorded higher cash and cash equivalents in its financial statements for the nine months ending September 30, 2023, going from $156 million at the end of 2022 to $297.6 million by that date. Recovering company volumes and prudent financial management were credited with this gain.

At the conclusion of the quarter, the company’s net debt, which is determined as total debts less cash and bank balances, was roughly $174.6 million.

Prior to this, NagaCorp’s refinancing risks had raised worries from Moody’s Investors Service, especially in light of the $545 million bond maturity due in mid-2024. NagaCorp expressed its confidence in fulfilling these financial responsibilities when they reach maturity, nonetheless.

Gross gaming revenues for the first nine months of 2023 increased by 12.1% year over year to $379.0 million, according to NagaCorp. The premium gaming market’s comeback served as the primary driver of this expansion. While Premium VIP and Referral VIP gross gaming revenues climbed by 39.5% and 46.3%, respectively, while Mass Market gross gaming revenue increased by 1.0% year over year to $247.2 million.

Additionally rising by 17.4% to $215.4 million, adjusted EBITDA.

NagaCorp attributed the significant rise in its direct VIP sector to an increase in Chinese immigration as well as an increase in the number of local expatriates. A significant majority of Chinese visitors were business travellers from China, who often stay longer and spend more money.

NagaCorp intends to increase the number of trustworthy referral VIP agents in its Referral VIP sector.

Original story by: IAG