Cambodia Investment Review
NagaCorp’s net profit declined 3.2% during the six months ended June 30, 2026, as lower VIP gaming activity offset continued growth in its mass-market segment.
NagaCorp Ltd., the Hong Kong-listed operator of NagaWorld in Phnom Penh, reported a net profit of $144 million for the first half of 2026, compared with $148.8 million during the same period in 2025.
Gross gaming revenue fell 8.6% year-on-year to $303.7 million, mainly reflecting weaker VIP gaming activity. Net gaming revenue declined 3.4% to $282.2 million, while gross profit decreased 2.7% to $268.4 million.
Earnings before interest, tax, depreciation and amortisation declined 2.4% to $195.4 million from $200.3 million.
Profitability margins improved during the reporting period. The gross profit margin increased to 85.7% from 80.7%, while the EBITDA margin rose to 62.4% from 58.6%. The net profit margin reached 46%, compared with 43.5% one year earlier.
MASS-MARKET REVENUE INCREASES 2.7%
Mass-market gaming, comprising public-floor tables and electronic gaming machines, remained NagaCorp’s largest revenue contributor during the six months.
The segment generated gross gaming revenue of $238.3 million, representing an increase of 2.7% from $232.1 million in the first half of 2025.
Combined business volumes across mass-market tables and electronic gaming machines increased 6.2%. The mass-market table win rate also rose to 23.4% from 22.9%, supported by demand for higher-house-edge side-bet games.
Mass-market gaming accounted for 78.5% of the group’s gross gaming revenue and 79.8% of its total gross profit. The segment recorded a gross profit margin of 89.8% after gaming tax.
NagaCorp said business activity moderated during the second quarter of 2026, which it attributed partly to FIFA World Cup match schedules coinciding with peak casino operating hours.
VIP REVENUE FALLS AMID LOWER REGIONAL TRAVEL
VIP gaming revenue declined 34.8% to $65.3 million during the first half, compared with $100.2 million in the corresponding period last year.
Premium VIP rolling volumes fell 50.2%, while gross gaming revenue from the segment declined 21.4%, with the difference partly reflecting a higher win rate.
Referral VIP rolling volumes decreased 67.6%, while the segment’s gross gaming revenue fell 63.9%.
NagaCorp said the decline was consistent with a 53.6% year-on-year reduction in leisure and business travellers from the Asia-Pacific region during the reporting period.
The company identified several factors affecting Cambodia’s inbound travel market, including international perceptions related to online scam activities, higher airfares associated with rising jet-fuel prices and a reduction in international direct-flight connectivity.
Tourist arrivals through Techo International Airport declined 28.9% year-on-year during the first half of 2026, according to tourism data cited in the company’s interim announcement.
NAGACORP ENDS PERIOD WITHOUT OUTSTANDING BORROWINGS
NagaCorp reported $416.3 million in cash, bank balances and fixed deposits as of June 30, up 11.8% from $372.3 million at the end of 2025.
The company attributed the increase to operating cash flows and working-capital management. It also fully repaid a $70 million shareholder loan in May 2026 and had no outstanding borrowings at the end of the reporting period.
NagaCorp declared an interim dividend of 0.98 US cents per share, equivalent to approximately 7.60 Hong Kong cents per share.
The company maintained an interim dividend payout ratio of 30%, citing a challenging operating environment that included elevated oil prices, reduced flight connectivity, weaker tourism figures, a subdued economic outlook in Asia and continuing reputational concerns surrounding Cambodia.
