NagaCorp, the company that operates NagaWorld located in Phnom Penh, Cambodia, announced its unaudited financial results covering the period that ended March 31, 2022.
NagaCorp on Its Way to Financial Rebound
Last year, the company has seen difficulties mainly because of COVID-related closures. Due to the COVID-19 pandemic, NagaCorp had to temporarily suspend its operations from March 2021 through September 15, 2021. The closures had an immediate impact on the company’s financial results in 2021. As a result, in February, the company reported a $147 million loss for 2021.
However, despite the impact of the pandemic, NagaCorp has seen an increase in business as well as growth in gaming revenue. Unaudited results released by the company Sunday reveal that EBITDA during 1Q 2022 hit $60.5 million. This marked a significant 83.3% growth when compared to the $33.0 million in EBITDA for 4Q2021.
“Based on the Group’s preliminary unaudited consolidated management accounts for 1Q2022, the Group generated about $60.5 million of EBITDA, representing an approximately 83.3% increase as compared to 4Q2021,“reads a statement released by NagaCorp
The company has also seen an uptick in daily net gaming revenues for its different operating segments. NagaCorp’s mass table segment during 1Q2022 hit $572,000, up 52.5% from the $375,000 during 4Q2021. Moreover, the company’s electronic gaming machines (EGM) segment grew to $280,000, up 15.2% from the $243,000 during 4Q2021. Similarly, NagaCorp has seen an uptick in its premium mass and referral VIP segments, increasing to $212,000 and $13,000 respectively.
Quarter-Over-Quarter Results Need Further Improvement
Undoubtedly, NagaCorp’s results during 1Q2022 have improved when compared to 4Q2021. However, a quarter-over-quarter comparison for the period reveals that the company’s gross gaming revenue (GGR) decreased in 1Q2022. For the three months that ended March 31, 2022, NagaCorp reported $109.9 million in GGR, down 13.7% from the $127.3 million for the same period in 2021.
The biggest decrease during 1Q2022 was observed in the referral VIP segment which plummeted by nearly 93% to $177.7 million when compared to 1Q2021. Not unexpectedly, referral VIP GGR also decreased significantly for the period. In 1Q2022, referral VIP GGR hit $4.3 million, down 93% from the $61.7 million during the same period the prior year.
The Company Remains Optimistic for the Future
According to the recent report, NagaCorp’s cash and cash equivalents have increased as of March 31, 2022, to $162.7 million, up from the $102.7 million recorded until December 31, 2021. NagaCorp explained that the increase was the result of “continued recovery of business volumes, improved cost efficiency post rationalization program and prudent cash expenditures decision from the Company’s management.”
Despite the impact of the pandemic, NagaCorp revealed that it remains optimistic about the future. It said that the lifting of travel restrictions combined with traveling-friendly policies will help restore tourism in the area. Consequently, NagaCorp expects to see an increase in visitors this year which will help offset the economic impact of the pandemic.