Hong Kong-listed NagaCorp said in a Monday filing that gross gaming revenues at its Cambodian integrated resort, NagaWorld, reached US$117 million in the three months to 31 March 2023, representing a 6.8% improvement over the same period last year.
But it could have been higher if not for bad luck playing its part in both the mass market and Premium VIP segments. Adjusted EBITDA of US$59 million was also flat year-on-year as a result of NagaWorld playing unlucky.
According to the company’s 1Q23 results summary, average daily mass market volumes have now reached 81% of pre-COVID levels, with average daily table buy-ins and EGM bill-ins of US$9.77 million representing a 16.8% year-on-year and 2.4% sequential improvement. This was also the highest quarterly volume since the first quarter of 2020, however segment GGR of US$76.6 million was 3.9% lower year-on-year due to the mass table games win rate falling from 19.6% to 16.8%.
NagaWorld’s Premium VIP (direct VIP) segment saw “accelerated” growth in 1Q23, with daily rollings of US$10.8 million up 43.9% year-on-year and 48.6% over 4Q22. The company suggested this “may be due to our successful conversion of previous referral VIP players into direct Premium VIP players,” with average daily rollings in this segment now back to 90.2% of pre-COVID levels. However, segment win rate was also down over the same period in 2022, from 4.3% to 3.5%, keeping segment GGR of US$28.6 million at 11.9% higher year-on-year.
Referral VIP saw average daily rollings rise 118% year-on-year and 22.6% sequentially to US$4.3 million, with GGR up 176% over 1Q22 to US$11.8 million.
“The Company witnessed the increasing headcounts of the Referral VIP Market especially from our neighbouring countries such as Thailand, Malaysia and Singapore,” NagaCorp said. “We will continue to develop the Referral VIP Market by identifying and recruiting more reputable referral VIP agents.”
Identifying the return of international visitors to Cambodia as a key factor in NagaWorld’s rising fortunes, the company also suggested the gradual return of Chinese customers bodes well for the year ahead.
“As China only effected Cambodia’s Approved Destination Status on 6 February 2023, the management believes that the recovery of Chinese tourists visiting Cambodia is in its early stages,” it said.
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