Nagacorp suffers revenue hit in 2021, as closures take toll

The majority of the revenue total - $223.5m - was derived from gaming operations. $179.5m came from gaming tables in casinos and electronic gaming machines in casinos added a further $44.0m. Sources such as hotel rooms and food and drink sales contributed $2.4m.

Mass market revenue from table games fell 61.8% to $66.5m, while revenue from electronic gaming machines dropped 46.6% to $44.0m. Revenue from the VIP market decreased to $64.4m from $613.0m in 2020.

After accounting for sales costs of $70.1m and gaming tax of $12.2m, net revenue for the year totaled $143.5m. Although this was bolstered by $5.6m in income from sources, operating and administrative expenses amounted to $252.3m.

This led to operating losses of $103.6m in 2021, compared to profit of $165.4m in 2020. Finance costs came to $37.1m, and income tax cost the company an additional $6.3m.

With a further $1.1m in losses from investments outside of the core business, Nagacorp's net loss for 2021 came to $148.1m, down from a $101.4m profit in 2020.

The revenue decrease was the result of its properties being closed due to the novel coronavirus (Covid-19) pandemic. This meant that Nagacorp's properties were in operation for less than six months in 2021.

The company's operations within Cambodia were suspended from 2 March to 15 September 2021 due to the Covid-19 situation.

However, the operator was able to maintain positive earnings before interest, taxation, depreciation and amortisation (EBITDA) of $22.4m, although this was down from the $265.2m recorded in 2020.

Nagacorp noted that its cumulative EBITDA of $281.0m during the Covid-19 period (January 2020 to December 2021) compared favourably to its peers, which it said averaged EBITDA of $19.0m for the same period.

Nagacorp has shown signs of recovery at the start of 2022. Daily average net gaming revenue for January 2022 came to $1.0m, which has recovered to more than 96% of February 2021’s number. The company's profit margin has also increased from 49.0% in 2020 to 64.0% in 2021.

“Looking forward, 2022 will remain challenging amid the fluidity of the COVID-19 situation and economic uncertainties,” Nagacorp said. “Nevertheless, with the easing of restrictions and the global economic recovery in sight, NagaWorld is expected to continue drawing tourists from South East Asia and East Asia, especially with incoming business migration inflows to Cambodia.

“The company expects to continue its current growth recovery in a COVID-19 endemic world, and believes that the long-term business prospects and outlook of the Group will remain stable.”