Hong Kong-listed NagaCorp reported gross gaming revenues of US$145.4 million in the three months to 31 March 2024, up 23.7% year-on-year thanks largely to impressive growth in the premium mass market at its Cambodian integrated resort, NagaWorld.
According to information filed overnight, mass market table games recorded a 34% increase in GGR for the period with premium mass high limit tables seeing 51% growth compared with 1Q23.
Average daily business volumes for the mass market in in 1Q24 were the highest since the reopening of the property in 3Q21, the company explained, adding that it had observed a “continuing increase of visitations to the property and international arrivals to the country.”
The mass market as a whole, including both table games and electronic gaming machines, booked a 19.9% increase in GGR to US$92.5 million on an 8.2% increase in buy-ins and bill-ins to US$951.3 million.
In the direct Premium VIP segment, GGR grew by 24.3% to US$35.5 million on a 19.3% improvement in rollings to US$1.16 billion. NagaCorp said average daily rollings in 1Q24 exceeded the average business volumes recorded in FY19 with the recovery of international tourist arrivals bolstered by the return of business-related travellers, who typically have longer repeated stays and higher spending power.
Referral VIP enjoyed a 47% increase in GGR to US$17.4 million although rollings were down 9.3% year-on-year to US$351.3 million.
“The Group will continue to develop the Referral VIP Market by identifying and recruiting more reputable Referral VIP agents by leveraging on the competitive incentive program and entertainment offerings,” NagaCorp said.
Adjusted EBITDA in 1Q24 grew by 32.6% year-on-year to US$80.4 million.
In its filing, the company noted that its total cash and bank balances had increased to US$414.3 million as of 31 March 2024, while it also intends to drawdown a loan of up to US$80 million extended by its controlling shareholder, Dr Chen Lip Keong, shortly before his passing late last year. These will be used to pay off the outstanding 7.95% senior notes totalling US$472.2 million upon their maturity on 6 July 2024.
NagaCorp previously stated its confidence in being able to cover this looming debt despite some analysts expressing concerns.
