Cambodia Investment Review
Hong Kong-listed NagaCorp Ltd. has announced strong financial results for the year ending December 31, 2022. The company reported a Gross Gaming Revenue increase of 99.5% to $445.9 million and a Net Profit increase of 173% to $107.3 million. In addition, NagaCorp’s EBITDA increased by 1,476% to $245.4 million, making 2022 a successful year for the company.
Read more: Naga Corp profit rebounds in H1’22 as mass market volume hits 80% of pre-covid levels
The strong financial results can be attributed to the company’s successful business recovery and focus on the Mass Market segment. NagaWorld continued to benefit from its domestic captive market in Cambodia and the gradual recovery of the country’s tourism industry.
The daily business volumes for both the Mass Market and Premium Market segments have recovered compared to pre-COVID-19 levels, and both segments collectively contributed 94% of the company’s total gaming revenue in 2022.
NagaCorp is committed to completing Naga 3
The NagaCorp board of directors has recommended a final dividend of $0.75 per share, with a payout ratio of approximately 60%. The company is focusing on the development of its Naga 3 project, which is expected to have approximately 5,000 hotel rooms, 1,300 gaming tables, 4,500 EGMs, and many other non-gaming attractions.
Approximately 93% of Naga 3’s gross floor area will feature non-gaming offerings, in line with the company’s long-term strategy of offering a comprehensive suite of lifestyle products and services.
The company is committed to developing and completing the Naga 3 project to enhance Cambodia’s tourism industry. With its casino monopoly in the heart of the capital city, the combined complex of NagaWorld is expected to become one of the largest riverine integrated resorts and entertainment centers in the Asia Pacific region.
NagaCorp is optimistic about the recovery of the tourism sector in Cambodia and believes that the long-term prospects and outlook will remain stable. With the upward trajectory of recovery in Cambodia, the country is expected to attract more international tourist arrivals and business-related travelers, especially from China and ASEAN countries.
Read more: Cambodia targets 4 million tourists in 2023
The company is well-positioned to take advantage of the growth opportunities in the tourism industry and is poised for continued success in the future.
Company share price bounces back
In addition to strong financial results, NagaCorp’s share price has also experienced significant growth. The company’s Hong Kong-listed share price has increased by 3.58 HKD since November 2022 and is currently trading at 7.14 HKD.
This rising share price can be attributed to a number of factors, including the company’s continued business recovery and focus on the Mass Market segment. The recovery of the daily business volumes for both the Mass Market and Premium Market segments, as well as the successful development of the Naga 3 project, have all contributed to the increase in share price.
Investors have taken note of NagaCorp’s strong financial results and its commitment to the long-term growth of the company. The recommendation of a final dividend of $0.75 per share, with a payout ratio of approximately 60%, is a further indication of the company’s commitment to shareholder value.
Read more: Cambodia’s local bond rating ‘not substantially impacted’ after Moody’s downgrades economic outlook to negative
As NagaCorp continues to execute its growth strategy and capitalize on the growth opportunities in the tourism industry, it is likely that its share price will continue to rise.
Overall, the rising share price of NagaCorp is a reflection of the company’s successful business performance and its potential for future growth. The company is well-positioned to take advantage of the growth opportunities in the tourism industry, and its continued success will likely be reflected in the growth of its share price in the coming years.