Nagacorp H1 revenue up 27 percent, issues dividend

    Unaudited results for Cambodian operator, Nagacorp, show that gross gaming revenue increased by 27 percent in the six months ended June 30, 2014 to $191 million. Gross profit increased 19 percent to approximately $132.7 million while net profit increased by 8 percent to $67.6 million. Mass market revenue rose 22 percent, almost matched by VIP revenue at 20 percent, a notable increase compared with Macau which has recently seen its VIP revenue decline rapidly.
    Nagacorp credits its new junket incentive program for the jump in VIP revenue and is confident that its two recently purchased Airbus 320 jets will further increase the number of overseas gamblers visiting its property as they will be able to fly in customers from cities where there is currently no direct link to Phnom Penh.
    The Board declared an interim dividend of 2.07 cents per share (HK$0.16), representing a payout ratio of around 70 percent of net profit generated for the period. The dividend will be paid on September 17, 2014.
    Meanwhile, the Cambodian government has announced an advertising ban of gambling in local media including print, TV, radio or online. The Ministry of Information told media outlets they were not allowed to “attract Cambodians to the game by promoting betting on football, horse races and online games.” Legal action will be taken against any media that flouts the ban.