NagaWorld Cambodia expected to achieve 26% y-o-y GGR growth in 2024

As to the report by China International Capital Corporation (CICC) Hong Kong Securities Ltd., gross gaming revenue (GGR) at the NagaWorld casino complex in Cambodia is expected to increase by 26% year until 2024.

This forecast is predicated on the anticipated rise in overseas demand for gaming, particularly from Chinese tourists.

In the capital of Cambodia, Phnom Penh, the NagaWorld casino, run by the Hong Kong-listed NagaCorp Ltd., has a monopoly casino license.

Despite the anticipated increase in GGR for 2024, according to analysts Goh Shengyong, Wang Jiayu, and Hou Liwei, the overall amount is anticipated to be less than half of that recorded in 2019, before the Covid-19 outbreak.

Based on a continuous rise in visitors, especially Chinese tourists, and a better customer mix that includes business travelers with greater spending power who are expected to remain longer at NagaWorld, the CICC team anticipates that NagaWorld’s mass GGR would return to 92% of the 2019 level by 2024.

The Association of Southeast Asian Nations (ASEAN) area’s increased purchasing power and the potential revival of the regional junket industry might contribute to the CICC’s projected 37% increase in VIP GGR by 2024.

Additionally, CICC identified a connection between GGR levels at NagaWorld and Chinese foreign direct investment in Cambodia.

For the first nine months of 2023, NagaCorp reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$215.4 million, a 17.4% increase over the same period the previous year. GGR from casino activities increased 12.1% to US$379.0 million in the prior year.

Original story by: GGRAsia