Cambodia-based gambling operator NagaCorp has announced impressive full-year results for 2022, reporting a revenue of $460.6 million. The company experienced a significant 104.0% increase in revenue, attributing this remarkable growth to Cambodia’s successful recovery from the Covid-19 pandemic.NagaCorp’s exceptional financial performance positions it as one of the few regional gaming companies to achieve profitability in 2022.
A Remarkable Revenue Surge:
NagaCorp’s revenue doubled from $225.8 million in 2021 to $460.6 million in 2022. This trend of exponential growth was evident throughout the entire financial results for the year. Timothy Patrick McNally, the chairman of NagaCorp, emphasized the company’s resilience in the face of major market disruptions, leading to its profitability in 2022. McNally also credited the improved business environment in Cambodia, which was facilitated by the lifting of pandemic restrictions.
Cambodia’s Recovery and Increased Tourism:
Cambodia experienced a substantial recovery in its tourism sector, with international arrivals reaching 2.2 million in 2022—an astounding increase of 1,059%. The country’s strategy of resuming socio-economic activities within an endemic posture contributed to the surge in Chinese arrivals for business and investment purposes. This influx of visitors has further bolstered the overall business migration into Cambodia, benefiting NagaCorp’s operations.
Financial Performance Breakdown:
NagaCorp’s revenue composition provides insights into its remarkable financial performance. Revenue generated from gaming tables accounted for $321.5 million, reflecting a substantial increase of 79.1%. Electronic gaming revenue also witnessed exceptional growth, reaching $124.3 million, an impressive year-on-year increase of 182.6%. Revenue from hotel rooms, food and beverage, and other sources contributed an additional $14.8 million, marking a rise of $12.4 million.
Cost of sales decreased slightly from $70.0 million in 2021 to $59.5 million. However, gaming tax more than doubled, totaling $25.1 million. As a result, the gross profit for the year surged to $375.9 million, representing a significant increase of 161.9%.
Profitability and Operational Efficiency:
NagaCorp reported other operating expenses of $201.4 million for the year, along with administrative expenses of $52.1 million and other income of $9.4 million. These figures contributed to a profit from operations of $131.7 million, surpassing the previous year’s results by an impressive $235.3 million. Furthermore, finance costs were reduced from a loss of $37.1 million to a loss of $24.2 million, resulting in a pre-tax loss of $107.4 million.
After accounting for income tax of $212,000, NagaCorp achieved a profit of $107.2 million for the year, showcasing a remarkable year-on-year increase of $254.2 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached $245.4 million in 2022, highlighting the company’s operational efficiency and financial strength.
NagaCorp’s outstanding full-year results for 2022 reflect its remarkable growth and profitability, driven by Cambodia’s successful recovery from the Covid-19 pandemic. As one of the few regional gaming companies to achieve profitability, NagaCorp’s resilience and adaptability have been key factors in its success. The significant increase in revenue from gaming tables and electronic gaming, combined with effective cost management, has resulted in a substantial gross profit and improved financial performance. With a strong focus on operational efficiency and the favorable business environment in Cambodia, NagaCorp is poised to continue its growth trajectory and consolidate its position as a leading player in the industry.