S&P Global ratings gave NagaCorp a ‘B’ rate with the analysis that the Cambodian gaming operator has a stable outlook for 2024.
Since repaying its outstanding senior unsecured notes in July 2024, NagaCorp has greatly reduced its refinancing risk. The company has closely managed its cash flow since 2022, limiting cash dividends and reducing capital expenditure (capex) to less than $165m over the past four years. The recent drawdown of a $70m shareholder loan helped strengthen its liquidity. The company has also expanded the completion date of its project, Naga3, by four years to September 2029. S&P estimated that the company would have a cash balance of $80m following the notes repayment.
However, NagaCorp’s gaming operations are unlikely to recover to pre-Covid levels, due to the elimination of Chinese junket operators. These operators had contributed 70% of the company's gross gaming revenue (GGR) in 2019, where NagaCorp’s reported revenue was at $1.8bn and EBITDA at $667m. NagaCorp's 2023 reported revenue and EBITDA stood at $533m and $292m respectively; a significant decrease of 30% and 44% compared to 2019's numbers. Currently, S&P estimates that NagaCorp’s reported revenue and EBITDA in 2025 will be 38% - 42% and 53% - 57% of pre-Covid numbers.
NagaCorp’s last update was in May 2024, when it announced the resignation of its Finance and Treasury CEO.
