NagaCorp Announce Strong Recovery After Pandemic

Following the reopening of NagaWorld in Phnom Penh, Cambodia casino operator NagaCorp announced its strong recovery, with its three combined segments of its gaming revenue sources returning to 91 percent of pre-COVID GGR at US$ 1.7 m per day.

The group said: “The COVID-19 virus has affected and significantly slowed down regional tourism. However, the group’s recovery from the effects of the virus has been relatively good.

“Since the reopening of casino businesses on July 8 2020 until September 30 2020, NagaCorp and its subsidiaries have recorded a relatively good recovery and sustenance of average daily gaming business volumes and average daily net gaming revenues contributed mainly by the patronage of expatriates.

“For many years, the group has been promoting the growth of the Mass Market as a more stable gaming segment. It was observed that during 3Q2020, business volume recovery of the Mass Market segment is leading, registering a recovery percentage of about 97 percent. The more volatile VIP Market is following behind and registered a recovery percentage of about 71 percent. Being the only integrated resort in the city of Phnom Penh also helped to drive the operational performance of the Group despite most cross-border travel policy in the Asian region remains restrictive.”

Mass market table buy-ins are back at US$ 3.5 m per day at 93 percent of pre-COVID levels, with GGR returning to US$ 744,000 per day at 88 percent. In reality, EGMs are already back to pre-COVID levels, generating US$ 316,000 GGR per day. It takes a little longer for VIPs to bounce back.

The group stated: “Despite most cross-border travel policy in the Asian region remain restrictive, the VIP business volume had recorded satisfactory recovery as average daily VIP Rollings recorded since August 1 2020 till September 30 2020 have reached 71 percent of the average daily volume recorded during the pre-closure period of 1Q2020.

“The sustained positive results (after the reopening of casino businesses) in VIP business is largely driven by sizable number of expatriates currently living and conducting business in Cambodia. Moreover, with the preventive measures against COVID-19 (as endorsed by the MOH) undertaken, VIP players feel more comfortable to visit NagaWorld. The group has observed repeating VIP customers and new clientele pool within both the junket hall as well as direct VIP player gaming hall.”

A variety of incentives and promotion packages for both mass and VIP markets were highlighted by NagaCorp. It explained: “The group is celebrating its 25th anniversary in 2020 and has launched property-wide marketing and promotion activities (including gaming and non-gaming offerings) which are expected to increase the daily property footfall, hotel occupancy and gaming business volumes.

“In conjunction with the 25th anniversary celebration, the Group has rolled-out wide range of incentives and promotion packages targeting different tiers of Mass Market (including premium players) and VIP Market. The incentives and promotion packages include complimentary hotel stay and food and beverage (“F&B”) offerings with committed buy-ins in the gaming segments of Mass Market tables and EGM. Multiple tiers incentives for both Mass and VIP Markets are offered to customers, whereby higher committed purchases of chips lead to higher value of incentives offered to customers. The competitive incentives offered are expected to increase gaming business volumes.”