A senior executive for Asian casino operator, NagaCorp Limited, has reportedly declared that his firm is now ‘in a position to take a look at fresh opportunities’ including the possibility of entering the nascent Japanese market.
According to a report, Tim McNally (pictured) serves as Chairman for the Hong Kong-listed firm and used an exclusive interview to state that the company has long been interested in obtaining a casino license for Japan but is also keen on remaining ‘realistic and mindful about our commitments.’
In the report from GGRAsia, McNally explained…
“We’ve been in Japan and in many other places and while we have to be mindful of our investments, by the same token we have the type of profile now and relationships with financial institutions where we are in a position to take a look at fresh opportunities. We’ve got to be realistic and mindful about our commitments but we are not closing our eyes and just limiting to where we are. We’ll keep looking at opportunities.”
GGRAsia reported that NagaCorp Limited is responsible for the giant NagaWorld complex in Cambodia and that this enterprise has a 70-year casino license alongside an agreement with the government that bans any other firms from offering gambling within a 124-mile radius of Phnom Penh until 2035.
Upping its commitment in Cambodia, NagaCorp Limited reportedly announced in April that it is preparing to spend as much as $3.5 billion in order to bring an extra 4,720 hotel rooms to its NagaWorld development. It purportedly explained that this third expansion phase will moreover encompass the premiere of an indoor ‘digital theme park’ alongside a twelve-level ‘multi-entertainment podium’ and could see the venue’s casino premiere up to 800 additional mass-market and VIP gaming tables as well as 2,500 more slots.
“Our monopoly as it currently exists goes to 2035. We have an appreciation for the time that we have and we need to maximize our opportunity. We are the leader in the hospitality sector in Cambodia and we see continued growth not only with Chinese tourists but visitors from around Southeast Asia. Phnom Penh as an urban area is going to continue to grow and I don’t think that the tourist numbers are overly optimistic.”
NagaCorp is furthermore building its new 279-room Naga Vladivostok venue in the Russian Far East with McNally exclaiming that work ‘is moving at a good pace right now’ and that the venue could begin welcoming its first visitors by ‘the second quarter next year’.
“It’s a new challenge; a different experience in terms of operating environment but we’ll have a similar approach as we did in Cambodia.”
NagaCorp posted a 53.1% increase year-on-year in its 2018 net profit to $390.6 million while the firm’s associated adjusted earnings before interest, tax, depreciation and amortization skyrocketed by 60% to hit $525 million. The operator additionally saw its gross gaming revenues for the twelve-month period rise by 54.9 % to reach almost $1.43 billion, which prompted its Chief Executive Officer, Chen Lip Keong, to agree to fund up to 50% of the coming NagaWorld expansion.
Finally, McNally concluded…
“The basic framework is done for the financing of [NagaWorld]. We’re pretty confident that this decision is going to serve us well. It demonstrates a lot of confidence and commitment from Dr Chen both in the company and our growth potential.”