End-of-year financials from Hong Kong-based NagaCorp – owner and operator of Phnom Penh’s NagaWorld casino and hotel complex – are likely to show sustained, substantial growth, according to Japanese investment bank and brokerage Daiwa Securities.
Daiwa representatives met with Naga management at the bank’s Consumer and Gaming Conference, which took place in Hong Kong last month. A follow-up note posted online by analysts Jamie Soo, Adrian Chan and Jennifer Wu, the bank stated: “With the continued growth in headcount and average spend per player, [NagaCorp’s] management believes the robust growth in its mass business should continue to see sustainable growth in the near term.”
The note also quoted Naga management as claiming that VIP margins had also substantially increased – bouncing back to the 2014 level of around 36 to 37 per cent, as opposed to last year’s rate of approximately 27 per cent. These gains were apparently made by way of Naga increasing its share of junket table-drop.
Naga’s financial results for Q1 2016 saw NagaWord net $153.8m (E135.5m) in GGR, representing a like-for-like increase of 35 per cent.
Slated for opening in 2017, construction work is still ongoing on an extensive, second phase of gaming development at NagaWorld – dubbed Naga2. However, NagaCorp is also set to open a new, subterranean duty-free shopping mall. Spanning some 4,000sq.km and stretching underground between both Naga resorts, the company has stated that NagaCity Walk will offer “an enhanced retail experience” as early as August.