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NagaCorp In Gradual Recovery Phase: A Resilient Journey

In the wake of unprecedented challenges posed by the global pandemic, NagaCorp, the leading integrated resort operator in Cambodia, embarked on a journey of resilience and adaptation. Despite the setbacks caused by COVID-19, the company has demonstrated remarkable tenacity, gradually recovering its operations and charting a course toward brighter days.

While most people look at destinations like Macau and Vietnam for casino and poker tournaments in Asia, Cambodia has slowly been rising in popularity too. On this page, we’re going to talk about their recovery in the last couple of years and their plans ahead, in particular with the Naga 3 project.

Navigating the Storm: 2020 and Beyond

NagaCorp’s Chairman, Timothy McNally, has been at the helm since 2005, witnessing the company’s evolution through various phases. The pandemic, a once-in-a-lifetime event, or like McNally described, a ‘once in 100 years event’, disrupted the global economy and severely impacted the gaming and hospitality sectors. NagaCorp was no exception. However, McNally’s unwavering commitment and strategic vision have been instrumental in steering the company through turbulent waters.

2023: A Year of Recovery

The financial results for 2023 reflect NagaCorp’s resilience. Despite falling slightly short of initial expectations, the company achieved significant milestones:

1. Gross Gaming Revenue (GGR): Up by 15.5% compared to the previous year.
2. Net Profit: Soared by an impressive 65.7%.
3. EBITDA: Increased by 20%.

These figures underscore the gradual recovery process. McNally emphasizes on the word ‘GRADUAL’ and that the journey is akin to climbing a mountain—one step at a time. The positive trends across business segments—mass market, premium, and VIP—signal a promising future.

Kathmandu Capital on Nagacorp $3918:

“we remain convinced that Nagacorp’s strong economic moat and compelling valuation constitute an attractive risk/reward opportunity”

(Extract from their Q4 letter) pic.twitter.com/Wv9ovqnMfP

— Stock Analysis Compilation (@StockCompil) February 14, 2024

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ALSO READ: Live Poker Rooms In Cambodia

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Foot Traffic and Operational Efficiency

NagaCorp’s administrative costs and operating expenses decreased in 2023, reaching $134 Million. This reduction, coupled with increased foot traffic, contributed to the company’s overall recovery. McNally acknowledges that the severity of the disruption necessitated a startup phase. Reopening business operations and attracting visitors required patience and strategic planning.

1. Malaysian casino tycoon and NagaCorp founder Chen Lip Keong has passed away at the age of 75.

According to Forbes, Chen was the 7th wealthiest man in Malaysia, boasting a net worth of US$2.8 billion as of May 31 this year. pic.twitter.com/RBR1fprVgp

— BFM News (@NewsBFM) December 11, 2023

The Chinese Connection

China, a vital market for NagaCorp, continues to play a pivotal role. Premium VIP and referral VIP guests contribute significantly to the bottom line. Despite travel restrictions, the allure of NagaWorld draws high rollers. McNally acknowledges that China’s gradual easing of travel restrictions has been a boon. Since February last year, travellers have been returning, albeit cautiously.

Nagacorp. A casino complex in Cambodia. Once mentioned many times on fintwit. I came to see myself.

Full of Chinese gambling like crazy. Looking at the graph there could be still some reopening gains to be made.

Nagaworld 1 and 2 both look nice! pic.twitter.com/VGWLuOpL53

— Antti Leinonen (@PaidWait) February 17, 2023

Naga 3: A Vision for the Future

NagaCorp’s ambitious project, Naga 3, remains on the horizon. Scheduled for 2029, this expansion aims to redefine luxury and entertainment in Phnom Penh. The project’s scope will be dictated by financing, ensuring a sustainable and impactful development. McNally believes that the best days for NagaCorp lie ahead, and Naga 3 will be a testament to that vision.

McNally mentioned that the original financing pledge for the Naga 3 project announced in 2019 was $3.5 Billion, and that the original numbers is still something they’ll go by. The only difference is that the COVID-19 disruption has moved the plans of completing the project by 2029, as compared to original plans of 2026 or 2027. Remember, NagaCorp has a monopoly licence till 2045, and McNally believes they will benefit from the growing mass market in the region.

Conclusion

As NagaCorp navigates the gradual recovery phase, it stands as a beacon of resilience and adaptability. The company’s commitment to excellence, combined with Timothy McNally’s leadership, assures stakeholders that brighter days await. The legacy of NagaCorp continues to unfold, and the best is yet to come. For more updates on the poker and casino industry across the world, stay tuned to GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter, and Telegram.

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