Cambodian gaming operator Nagacorp has released its financial report for 2021, revealing a significant year-on-year decrease in revenue. The closure of properties due to the Covid-19 pandemic resulted in a limited operational period during the year. However, the company remains optimistic about its recovery prospects in 2022.
Revenue Breakdown:
Nagacorp’s total revenue for 2021 reached $225.9 million, reflecting a substantial 74.3% decline compared to the previous year. The majority of the revenue, $223.5 million, was generated from gaming operations, with gaming tables in casinos contributing $179.5 million and electronic gaming machines adding $44.0 million. Additional sources, such as hotel rooms and food and drink sales, accounted for $2.4 million.
Market Performance:
The mass market revenue from table games experienced a significant drop of 61.8% to $66.5 million, while revenue from electronic gaming machines decreased by 46.6% to $44.0 million. Notably, revenue from the VIP market plummeted from $613.0 million in 2020 to $64.4 million in 2021.
Financial Losses:
After factoring in sales costs of $70.1 million and gaming tax of $12.2 million, Nagacorp’s net revenue for the year totaled $143.5 million. However, operating and administrative expenses amounted to $252.3 million, leading to operating losses of $103.6 million, a significant decline from the $165.4 million profit recorded in 2020. The company also faced finance costs of $37.1 million and an additional income tax expense of $6.3 million, resulting in a net loss of $148.1 million for 2021, compared to a $101.4 million profit in the previous year.
Recovery and Prospects:
Although Nagacorp experienced challenging circumstances in 2021, it managed to maintain positive earnings before interest, taxation, depreciation, and amortization (EBITDA) of $22.4 million, albeit lower than the $265.2 million recorded in 2020. The company highlighted that its cumulative EBITDA of $281.0 million during the Covid-19 period (January 2020 to December 2021) outperformed industry peers, who averaged $19.0 million for the same period.
Looking ahead to 2022, Nagacorp acknowledges the ongoing challenges posed by the fluidity of the Covid-19 situation and economic uncertainties. However, with the easing of restrictions and the global economic recovery on the horizon, the company expects NagaWorld to continue attracting tourists from Southeast Asia and East Asia, particularly with the influx of business migration to Cambodia. Despite the anticipated difficulties, Nagacorp remains confident in its growth recovery and stable long-term business prospects.
Nagacorp’s financial report for 2021 reflects a significant revenue decline attributed to the limited operational period caused by the Covid-19 pandemic. However, the company remains positive about its recovery prospects in 2022. While challenges persist, Nagacorp expects to leverage the easing of restrictions and the gradual revival of the global economy to drive its growth. With an optimistic outlook, the company anticipates continuing its stable business trajectory in a Covid-19-endemic world.