Hong Kong-listed NagaCorp said its IR project in Vladivostok, Russia, remains “broadly on schedule for operation by 2019.”
In a commentary in its annual report, Chairman Timothy McNally wrote that the company has established an office in the city center and a number of key personnel have been appointed to monitor various aspects of the project. Piling work began in 2016.
“We believe our strategy to diversify our business geographically and expand into new casino markets will drive revenue growth in the long term,” he wrote.
The company agreed in 2013 to invest not less than $350 million in a resort project under the name of Primorsky Entertainment Resort City. It will join Summit Ascent Holding’s Tigre de Cristal, which opened in 2015.
Primorye is seen as having the most potential of Russia’s gaming zones due to its proximity to the Northern Chinese and Korean markets. According to officials, Tigre de Cristal welcomed more than 200,000 visitors last year.
NagaCorp, which operates Cambodia’s NagaWorld casino, ended 2016 with net profit of $184 million, up 7 percent over the prior year. Gross gaming revenue increased by 4 percent to $501 million.
Non-gaming revenue increased by 33 percent to $30.7 million, primarily resulting from higher occupancy and average rates as well as better performance across all the food and beverage outlets.