NagaCorp reports 15.5% rise in GGR for 2023

The company that owns NagaWorld, the sole casino resort in Phnom Penh, Cambodia, NagaCorp Ltd., has announced that its gross gaming revenue (GGR) for 2023 would grow by 15.5% to $515 million.

For the fiscal year that concluded on December 31, 2023, the company also recorded a significant increase in net profit, which increased by 65.7 percent to $177.7 million from $107.3 million the year before.

The firm recorded higher EBITDA of $295.3 million in its most recent financial results, which were released on Monday. This represents a 20.3 percent rise from $245.4 million in the prior year and improved EBITDA margin of 55.4 percent for the same period.

With a combined gross profit margin of 84 percent (net of gaming tax), NagaCorp highlights that the mass market and premium VIP market sectors accounted for 94 percent of total gross profit in FY23. A rise in average rollings per visit and greater client visitation contributed to the 46.5 percent growth in premium VIP market rollings to $4.3 billion over the prior year.

Due to a 52.3 percent rise in business volumes, the referral VIP market’s GGR climbed by 67.6 percent annually to $44.2 million.

Additionally, the company’s financial report reveals that average daily business volumes for the mass market sector have increased by 7.2 percent year over year. This suggests that the segment is seeing a long-term rebound, which is being assisted by a rise in property visits.

Chinese tourism lagged behind with a recovery rate of 23.2% in 2023, while international visitor arrivals rose by 82.5 percent in 2023 compared to 2019, according to Cambodia’s Ministry of Tourism’s 2023 tourist report. Of all Chinese visitor arrivals, 71.9% were business travelers.

Although there are now only around 26 percent of the direct weekly flights from the Greater China region to Cambodia, management anticipates ongoing development in the mass market category as Chinese tourist visits to Cambodia expand as a result of improved direct airline connections.

Hun Manet, the prime minister of Cambodia, and Xi Jinping, the president of China, had a discussion that led to the designation of 2024 as the ‘Year of People-to-People Exchanges’ between the two nations, with the aim of boosting investment, tourism, and trade.

Additionally, NagaCorp revealed that premium mass consumers increased their average spending in FY2023; in high-limit gaming zones, premium mass customers accounted for about 34.8 percent of the overall Mass Market Table GGR, up from 23.3 percent before to the pandemic.

Original story by: Asia Gaming Brief