Cambodia’s Nagacorp has published a profit warning for its stakeholders. The group was expected to record a figure between a profit of US$3.1m and a loss of US$6.9m for its H1 2024 revenue, based on a preliminary review of the unaudited management accounts and currently available information.
The expected loss was mainly attributed to preliminary findings from the independent revaluation of the group’s gaming and resort project in Vladivostok, Russia, which indicated an expected impairment of approximately US$85m to US$95m.
The impairment was due to “an increase in the discount rate used for the purpose of determining the project's present value and the lower business volume expected to be generated from the Vladivostok Project.”
However, the group reiterated that the above results were only a preliminary assessment and have not been reviewed by the auditor or the audit committee of the company. The group’s overall financial position remains healthy, and the expected impairment is unrealised, thus not affecting the group’s cash flow.
The group’s actual financial review for H12024 will be announced by the end of August 2024.
Nagacorp’s Vladivostok project was supposed to join Tigre de Cristal and Shambala as three integrated resorts in the Primorye Economic Zone in Russia.
Earlier, LET Group, the owner of Summit Ascent, which owned shares in Russia’s Tigre de Cristal, had planned to sell off its shares in the Russian casino as the Russian-Ukraine conflict escalated.
