NagaCorp – the operator of NagaWorld, and the only casino resort in Cambodia’s capital of Phnom Penh – recorded gross gaming revenue of US$153.8 million (MOP1.23 billion) for the first quarter of 2016, according to a Monday filing on the Hong Kong Stock Exchange. Strong results recorded in VIP, mass and slots backed the increase of 35 per cent year-on-year in growth. According to the voluntary announcement, the augment was a result of 65 per cent in VIP rolling chip turnover, which totalled US$2.79 billion for the quarter. In addition, mass electronic gaming machine bills-in totalled US$381.1 million in the first quarter of 2016, up 32 percent in year-on-year terms. Moreover, mass public floor table buy-ins recorded a growth of 15 per cent to US$149.9 million, according to the same filing. However, the firm didn’t specify its profit, as well as not providing comments on the reasons for the growth in the gross gaming revenue during the first three months of the year. Different stories In a Tuesday note following the company’s announcement, Union Gaming analyst Grant Govertsen stated that NagaCorp’s first quarter numbers “not surprisingly” show very strong growth. However, as VIP volume growth in the first quarter was exceptional compared to the 25 per cent increase predicted, the analyst says they would not expect the growth rate to continue through the second quarter. Mr. Govertsen pointed out that the growth was “driven primarily by the legacy Southeast Asian junkets, with the Macau names providing an extra boost via special event weekends.” With regard to mass table revenue, the analyst attributes it to the growth of investment in Phnom Penh in general, as well as the recent ability to exchange cash for chips at the table (rather than at the cage), and also from the Bassaka Air flights that began operating in December and targeting Mainland China Tier 2 cities. The research firm says they would look for mass table growth to remain strong for the balance of the year and maintain a full-year forecast of 16 per cent volume growth. In general, the Union Gaming analyst stressed that they maintain their higher-than-consensus expectations, as “its VIP story is clearly still intact despite the continued weakness in markets like Macau.” “Naga remains unique in its positioning in IndoChina capturing an outsized share of wallet from still-booming tourism growth, especially on the part of mass market Mainland China consumers visiting Cambodia,” the Tuesday note reads.
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