Weathering the Pandemic in Cambodia: Local Market Leader NagaCorp Figures Provide Sterling Market ReportPublished March 24, 2021 by Lee R
NagaCorp's local work and remote IR project are providing resilience to the Cambodian market.
Financials for 2020 performance of a local powerhouse indicate the Cambodia market is thriving coming out of the Covid era.
With barely any regulation or iGaming revenues only a few years ago, strong private operations are fortifying the present and future of the market with tangible data which bears further examination.
The key data from NagaCorp indicates a net profit of US$102.3 million for the year while most local firms suffered losses in the year of the pandemic, which in Cambodia included a three-month closure lasting to July 8, 2020.
Gross Gaming Revenue came in at a healthy US$869.6 million, broken down across mass market tables GGR (US$174.3 million); mass market EGM GGR (US$82.4 million); and VIP market GGR (US$613.0 million).
Land-based contributions were placed to hotel and entertainment revenues, which totaled just under US$14.8 million for the year.
Drivers of Growth
NagaCorp likes near-term future prospects for the market as well, citing vaccination roll-out, and anticipated gradual border openings in Asia as keys to drive growth in Cambodia's economy and tourism sector of Cambodia, which NagaCorp looks forward to benefiting from privately as well.
NagaCorp called the financial a testament to the Cambodia's overall market resilience during the pandemic era:
“The number of Covid-19 cases in Cambodia is relatively well contained and those efforts have won positive response.”
NagaCorp further noted The Lancet's ranking of Cambodia as No. 4 country in the world for “outstanding effort” to combat the spread of the epidemic, a key recognition for the otherwise oft-characterised “fledgling” jurisdiction.
Remote IR Update
NagaCorp also indicated its IR project in development since 2016 in the Russian Far East city of Vladivostok was on schedule, with “certain key personnel” appointed to ensure the pace, with visible benchmarks including a new hotel tower recently topped off and construction of a casino podium progressing to level two. NagaCorp predicted operations to commence on schedule by 2022.
The successful remote IR project suggests more long-term revenues for NagaCorp to reinvest in the Cambodia market as well, leaving the future of the emerging jurisdiction looking extremely robust coming out of the Covid shutdowns.