Mass gaming helped to drive NagaCorp, operator of NagaWorld in Phnom Penh, Cambodia, generate GGR of US$283.4m in the first half of 2024, a jump of 12.3 per cent.
The group recorded a steady business volumes recovery during the period. This reflected the continued increase in leisure and business visitation to NagaWorld with the gradual recovery of tourism in Cambodia, together with a stable captive domestic market that has proven to be a self-sustaining business.
The average daily business volumes for the Mass Market saw a 5.7 per cent year-on-year increase from US$10m to US$10.5m, representing a recovery of 87.2 per cent compared to the pre-pandemic financial year ended 31 December 2019. This growth was primarily attributable to the stable and improving headcount at NagaWorld and the increase in the average business volumes highlighted the resilience of the captive domestic market comprising a reasonably sized expatriate community, along with the recovery of international arrivals to Cambodia via the Phnom Penh International Airport, which has recovered to 76.9 per cent of the pre-pandemic level in 1H2024 compared to the same period in 2019.
In 1H2024, the average rollings per Premium VIP player increased by about 11.6 per cent year-on-year. The average daily rollings of the Premium VIP Market in 1H2024 recovered to 82.6 per cent of the pre-pandemic level in FY2019. This performance was on the back of the return of business travellers to Cambodia and ongoing conversion of some previous Referral VIP players into direct Premium VIP players. The Group observed that business travellers typically have greater spending power and longer repeated stays.
The operator stated: “Collectively, the Mass Market and Premium VIP Markets contributed approximately 89 per cent and 93.4 per cent of the group’s total GGR and gross profit respectively during the Period. Referral VIP Market revenue recorded a year-on-year growth of 17.6 per cent during the Period, supported by an improved win rate of 3.8 per cent despite softer rollings. Average daily rollings increased sequentially quarter-on-quarter by 33.3 per cent to US$5.1m in the second quarter of 2024. This can be attributed to the ongoing gradual return of both leisure and business travellers patronising NagaWorld in search for high quality entertainment offerings. The group will continue its strategic efforts to pursue and work with reputable referral VIP agents.”
