Nagacorp posts strong first quarter growth

HK-listed Nagacorp announced strong results for the first three months of 2016, with VIP volume leading in growth for the period.

VIP rolling chip volume for the first quarter was up 65 percent, to US$2.8 billion, up from $1.7 billion in 2015.

Mass EGM bills increased 32 percent to $381 million, and mass public floor tables buy in increased 15 percent to $149.9 million for the first quarter of 2016.

Total gross gaming revenue went up 35 percent to $153.8 million, compared to $113.5 million in the same period in 2015.

Union Gaming says the latest figures do not come as a surprise given the results of the first quarter of 2015, however said they do not expect this growth rate to continue into the second quarter.

“Like 4Q16, we think growth was driven primarily by legacy SE Asian junkets, with the Macau names providing an extra boost via special event weekends,” said Union Gaming analysts.

Union Gaming says it is reiterating its Buy rating on Naga shares as “the company continues to deliver strong results quarter after quarter despite the overall tough gaming macro in Asia.”

“Naga remains unique in its positioning in IndoChina to capture an outsized share of wallet from still-booming tourism growth, especially on the part of mass market mainland China consumers visiting Cambodia. Its VIP story is clearly still intact despite the continued weakness in markets like Macau,” added Union Gaming analysts.