NagaCorp Sees Over 80% Y-O-Y Profit Drop Amid Pandemic

• 9 March 2021
• Property Focus
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NagaCorp has posted a net profit of US$102.3 million for its 2020 financial year, an 80% drop compared to the amount earned in 2019, mainly due to the April-July closure in response to the COVID-19 pandemic.

According to their annual report released on 08 March, the total revenue of the firm in 2020 was recorded at US$878.7 million, also down by 49.9% from US$1.76 billion in the previous year.

By sections, traditional table games were the primary source of income, accounting for US$787.3 million of total revenue in 2020. Revenue from electronic table games was at US$82.4 million, while hotel room, F&B and other revenue was at US$9.1 million.

Though experiencing a significant profit drop, NagaCorp believed that they still delivered relatively good financial results in the year. This was because the group was able to operate without much interruption in Q1 2020, and due to the re-opening of casino businesses from 08 July 2020 until 31 December 2020.

“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,” said the report.

“Looking ahead, the company believes the rollout of vaccination, and eventually the anticipated gradual border reopening throughout Asia may most likely further improve the economy and tourism sector of Cambodia, which is expected to contribute positively to the group’s business.”

The report also added construction of the Naga 3 is expected to completed by 2025. With three buildings combined, the group will have about 5,000 hotel rooms, 1,300 gaming tables and 4,500 EGM and many other non-gaming attractions.

On 01 March, NagaCorp announced that the firm has voluntarily suspended operations after 11 of their staff tested positive for COVID-19. The main objective of the suspension is in response to the recent surge in community transmission or known as the ‘20 February Incident’. (Read more)

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