NagaCorp, the prominent operator of NagaWorld in Phnom Penh, Cambodia, has unveiled its financial results for 2023, showcasing a remarkable surge in net profit and EBITDA.
Financial Overview:
In 2023, NagaCorp witnessed a substantial year-on-year increase in net profit, soaring to US$177.7 million, marking a notable surge of 65.7%. Additionally, its EBITDA experienced a robust growth of 20.3%, reaching US$295.3 million. These impressive figures reflect the company’s resilience and strategic initiatives amidst evolving market dynamics.
Revenue Growth Drivers:
The surge in net profit and EBITDA can be attributed to a myriad of factors driving revenue growth across NagaWorld’s gaming segments. Gross gaming revenues surged to US$514.8 million, indicating a substantial 15.5% increase from the previous year. NagaCorp cited higher revenues across all business segments, positive operating leverage, and reduced finance costs as primary contributors to this growth trajectory.
Financial Stability and Liquidity:
Despite facing impending bond repayments, NagaCorp demonstrated robust financial stability with a significant increase in total cash and bank balances. The company’s cash reserves surged from US$175.2 million in 2022 to US$367.6 million in 2023, underscoring its liquidity position and ability to meet financial obligations.
Recovery to Pre-COVID Levels:
NagaCorp highlighted its rapid progress towards pre-COVID levels, primarily driven by the resurgence of its Premium VIP segment. Average daily rollings in this segment witnessed a remarkable 46.5% year-on-year growth, surpassing pre-pandemic business volumes. The resurgence of business-related travelers, particularly from neighboring countries, fueled this growth trajectory, reflecting increased spending power and longer stays.
Performance Across Gaming Segments:
NagaWorld’s performance across gaming segments showcased a robust recovery, with daily mass market volumes increasing by 7.2% year-on-year and reaching 82.3% of 2019 levels. Additionally, Referral VIP rollings surged by 52.3% year-on-year, driven by an expanding customer base from diverse geographical locations. Despite the growth in these segments, Premium VIP and mass gaming remained predominant contributors, jointly accounting for 94% of gross profit for the year.
NagaCorp’s stellar financial performance in 2023 underscores its resilience, strategic agility, and ability to capitalize on evolving market opportunities. With a strong focus on revenue diversification, enhanced customer engagement, and financial prudence, the company remains well-positioned for sustained growth and value creation in the dynamic gaming landscape.