Naga delivers strong 15Q3 results despite regional headwinds

NagaCorp reported a 47 percent increase in gross gaming revenue at its NagaWorld Casino in Phnom Penh, Cambodia, for the first nine months of the year.

GGR reached $399.85 million compared to $271,86 million in the same period the year before, the company said in a filing.

Gross revenue from the VIP market amounted to $193.4 million, up 52 percent year-on-year, while gross mass revenue reached $206.45 million, up 43 percent YoY.

“Naga, via a laundry list of growth initiatives, continues to deliver earnings growth despite regional headwinds,”said Grant Govertson, an analyst at Union Gaming.

Though NagaCorp has made efforts to attract Chinese visitors gamblers, Govertson estimates less than 20 percent of total revenue comes from mainland Chinese, “and the Chinese mass market story at Naga is likely under-appreciated.”

“The bulk of Naga’s growth story is driven by strength in SE Asia / Indochina in general, by economic trends in Phnom Penh in particular (lots of FDI, growing expat community), and by various in-house initiatives like allowing players to exchange cash for chips at gaming tables rather than only at the cage.”