The construction progress of Naga2 and the forthcoming opening of NagaCity Walk are positive signs for the Cambodia-based casino operator, says Union Gaming who recently conducted a site visit.
“We expect continued strong volume trends in 2Q16 and have a decidedly positive outlook on 2H16 and beyond, including the forthcoming openings of NagaCity Walk and Naga2,” said the brokerage.
Union Gaming said they were particularly encouraged by the significant construction progress on Naga2, which they believe is “within one month of topping out,” with potentially a 2H17 opening. The new development is said to include more than 1,000 hotel rooms, up to 300 gaming tables and 500 electronic gaming machines.
In addition, NagaCity Walk, a shopping complex connected to NagaWorld Casino is also likely to be operation in 2H16, said Union Gaming. The new development will add a much needed upscale retail offering, which should help boost premium play at the property and more foot traffic in general.
Union Gaming said it was adjusting their 2016 estimates slightly downward for the company however to reflect “bad luck” in the first half of the year, though they believe “there is more upside risk than downside from here…”