Hong Kong listed, Cambodian casino operator, NagaCorp have revealed a successful H1 report highlighting net profit and improved revenues thanks to a strong VIP and tourist market.
The casino is located in the Cambodian capital Phnom Penh and is now the largest in the region with a gambling licence that runs until 2065.
The Chairman of Nagacorp, Timothy McNally said: “We are pleased to report that NagaCorp continued to generate positive operational and financial results for shareholders of the Company during the six months ended 30 June 2017 with net profit of US$150.6 million, a 20% increase over last year.”
The strong results have relied heavily on the increased stability in the Cambodian market. Foreign investors and Chinese tourist have increased creating a positive multiplier effect for the companies in Phnom Penh.
Mcnally added: “Gross Gaming Revenue for the first half of 2017 increased by 40% to US$386.8 million. Our positive results were attributed to a combination of solid business strategy and acumen, operational and execution efficiency, and an increasingly vibrant tourism market in a politically stable country, leading to an increase in business volume across all segments of the gaming business.”
The strategies included an increased focus on VIP customers who saw their stakes increase by 89% to a total of $210.5m revenue for NagaCorp.
NagaCorp said: “This business volume growth is attributable to the improved headcount at NagaWorld as a result of visitation and tourism growth into Cambodia, particularly from China which recorded 36% growth in the first five months of 2017.”