NagaCorp books US$18 million EBITDA in H1 despite four-month closure

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NagaCorp Ltd fell to a US$72.2 million loss for the six months to 30 June 2021, with the closure of its Cambodian integrated resort NagaWorld since 2 March putting paid to a strong start to the year.

Revenue for the period fell 65.4% year-on-year to US$130.4 million, however the group still recorded positive EBITDA of US$17.7 million citing stable recovery of its gaming business prior to Cambodias COVID-19 outbreak in late February.

In those two months of operations before closure, NagaWorld recorded GGR of US$129.3 million of which the VIP segment contributed US$80.5 million, down from US$270.9 million a year earlier.

Mass table revenue fell 66.4% to US$29.9 million while EGM revenue fell 42.0% to US$18.9 million.

NagaCorp said its positive EBITDA result was aided by improvements in operating efficiencies and rigorous financial discipline which kept costs to a minimum. This included a number of controversial staff cuts which the company confirmed in June.

While Cambodia continues to struggle against COVID-19, NagaCorp said it remains hopeful that the countrys vaccination rollout currently on target to reach 75% by the end of the year could see borders reopened to low-rosk countries sometime in Q4.

Looking ahead, 2021 will remain challenging largely resulting from economic uncertainties arising from the unprecedented COVID-19 pandemic, the company said.

Nonetheless, with the relaxation of restrictions and the global economy slowly returning to normalcy, NagaWorld is expected to continue drawing tourists from Southeast Asia and East Asia, especially with incoming business migration inflows to Cambodia. The Group expects to continue its growth trajectory and believes that the long-term prospects and outlook of the Group will remain stable.