Cambodian casino operator NagaCorp continued its winning ways in H1 2016, posting a nearly one-quarter gain in net profits.
For the six months ending June 30, NagaCorp reported across the board positive numbers at its flagship NagaWorld property in Phnom Penh. Revenue rose 10.3% to $288.5m while profit after tax rose 24% to $125.2m.
All of NagaWorld’s gaming segments posted gains in H1, with VIP turnover up 26%, mass market table buy-ins up 17% and mass market electronic gaming machine bills-in up 18%. The revenue figures would have been up higher were it not for the fact that all three gaming segments reported decreased win rates in H1 as customers ran lucky.
NagaCorp credited its gains to its decision last year to permit table buy-ins at all its mass market tables, and to its collaboration with Chinese travel agents and an independent airline operator that began making thrice weekly flights from the Chinese cities of Changsha and Xian to Cambodia.
NagaCorp said its Golden Edge Rewards Club loyalty program’s active mass market membership had grown by 14% since the year began, allowing the casino to craft targeted marketing promotions and player development initiatives to further drive visitation and gambling spend.
On the VIP side, the company noted that it had boosted revenue despite win rate falling 0.5 points to 2.5% in H1. NagaCorp credited revisions to its overseas junket incentive program with helping to improve its VIP margins.
Non-gaming amenities remain a relative afterthought, with revenue increasing 4% to $11.4m in H1. However, non-gaming gross profit more than doubled to $9.2m thanks to a healthy 81% margin.
As for in-development projects, this month will witness the opening ceremony of the NagaCity Walk retail shopping project’s anchor tenant, China Duty Free Group. The TSCLK Complex, which comprises the new hotel and gaming operations of the Naga2 offering, is projected to open for business sometime next year.
As for NagaCorp’s in-development casino in Russia’s Primorye gaming zone, piling work began on the site this year and the project continues to target a late-2018 opening.
NagaCorp plans to boost its efforts to attract more international tourists by targeting more Chinese cities for its direct airline flights. Cambodia expects to welcome around 1m Chinese tourists in 2016 and hopes to double this number by 2020.