,Hong Kong

NagaCorp Ltd. posted US$102.3m profit in 2020

Its profit, however, declined compared to its 2019 level due to lockdowns and reduced tourist arrivals. 

Casino operator NagaCorp Ltd. reported a $794.5m (US$102.3m) net profit in 2020 despite temporary closures of casinos in the beginning of the year.

Hong Kong-listed NagaCorp’s operations in Cambodia were affected by the lockdown that lasted for more than three months and by the reduced level of tourist visits.

The company was still able to generate a total of $2.05b (US$265.2m) in earnings before in interest, tax, depreciation and amortization (EBITDA) after it was able to reopen on 8 July 2020.

The reopening led to the recovery of its net profit and EBITDA by 297% and 99%, respectively when compared to the first half.

The 2020 results, however, are lower than its 2019 profit for the year worth $4.04b (US521.2m).

NagaCorp attributed its 2020 profit to the promotional activities for its 25th anniversary celebration that increased hotel occupancy and gaming business volumes as well as Cambodia’s ability to contain spread of COVID-19 and its positive economic outlook.

It generated a gross gaming revenue of $6.75b (US$869.6m) in 2020, which covers the mass market tables $1.35b ($174.2m), mass market electronic gaming machines $640m (US$82.4m), and VIP market $4.76b (US$613m). The gross gaming revenue declined from $13.2b (US$1.7b) in 2019.

This showed a 95% and 69% recovery for the mass and VIP market segment, respectively. “The satisfactory recovery of the gaming business volumes and revenues was largely contributed by a reasonably sized expatriate community and to some extent, visitors from East Asia (mainly from China, South Korea and Taiwan) patronising NagaWorld in search of entertainment,” the company said.

The group added it had cash and deposits amounting to $3.5b (US$452m) as of 31 December 2020. On top of this, it was able to complete the issuance of $2.71b (US$350m) 2024 Senior Notes in July 2020.

“The company has sufficient cash reserves set aside to repay the existing 2021 Senior Notes,” the group said in its 2020 final results. “The accumulated cash and deposits demonstrate the group’s continued ability to retain reasonably good cash position despite the COVID-19 pandemic.”
 

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