NagaCorp has announced a special “Hardship Relief Dividend” that will see it pay out 100% of net profits generated for the second half of 2020 to “loyal” shareholders the company says “stayed on faithfully with us during the COVID-19 crisis.”
The dividend, worth a total of around US$81 million or 1.88 cents per share, comes as NagaCorp revealed Monday a net profit of US$102.3 million for the financial year ended 31 December 2020, driven by a strong recovery in the second half of the year at Cambodian integrated resort NagaWorld.
Thanks to a 99% sequential increase in EBITDA and 297% increase in net profit in 2H20 compared with the first six months, NagaCorp generated FY20 GGR, EBITDA and net profit of US$869.6 million, US$265.2 million and US$102.3 million respectively, it said.
“As a reward to the shareholders who believe in the long-term growth of the Group despite today’s difficult times and in order to alleviate any sufferings, if any, of these loyal shareholders who have stayed on faithfully with us during the COVID-19 crisis, the Board has recommended an unprecedented 100% dividend payout of net profits generated for the second half of 2020 as final dividend for the year,” NagaCorp said.
Although a recent outbreak of COVID-19 across Cambodia saw NagaWorld last week suspend operations after 11 staff tested positive, the IR had previously been outperforming regional peers through the latter stages of 2020 on the back of a strong mass market rebound.
NagaWorld also closed for three months through 2Q20, but after reopening on 8 July had seen mass market GGR recover to 95% of pre-COVID levels versus a more modest 69% recovery in VIP.
NagaCorp said Monday that 4Q20 saw a 23% improvement in average daily buy-ins on all its mass market tables combined to US$3.9 million compared with the September quarter.
“The satisfactory recovery of the gaming business volumes and revenues was largely contributed by a reasonably sized expatriate community and to some extent visitors from East Asia (mainly from China, South Korea and Taiwan) patronizing NagaWorld in search of entertainment,” the company said.
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