Asian casino operator NagaCorp Limited has released its unaudited financial results for the first three months of 2017 showing that VIP rolling chip volumes had increased by 34% year-on-year to reach over $3.73 billion.
The Hong Kong-listed firm is responsible for the NagaWorld casino and entertainments complex in Cambodia and explained that mass-market table buy-in at the Phnom Penh venue during the three months to March 31 rose by 13% year-on-year to hit $169.37 million while electronic gaming machine takings surpassed $417.29 million, which represented a boost of 10%.
“Shareholders and potential investors of the company should note that these figures represent indications of business volumes from which revenues are derived based on the actual daily percentage win-rates recorded by the group and do not constitute profit numbers,” read a statement from NagaCorp Limited. “These business volumes are shown on a basis that is consistent with the presentation of such information in the company’s annual and interim reports.”
NagaCorp Limited recently cancelled its junkets promotion arrangement with Jimei International Entertainment Group Limited while it ended 2016 by reporting annual VIP rolling chip volumes of $8.71 billion, which was an 11% boost year-on-year, alongside improved mass-market table buy-in of $617.79 million and electronic gaming machine revenues in excess of $1.49 billion.
“It is important to note that VIP volume of $3.73 billion was up against a plus-65% comparison from the first quarter of 2016,” read a statement from Union Gaming Securities Asia Limited analyst Grant Govertsen while he also pointed out that the initial three months of 2016 had been “the highest NagaCorp [Limited] had ever achieved in any given quarter”. “The departure of Macau’s Jimei [International Entertainment Group Limited] junket at the end of January clearly didn’t impact volumes.”
Govertsen proclaimed that the first-quarter results from NagaCorp Limited had seen his brokerage increase its forecast on growth for the casino firm’s full-year VIP volumes by seven percentage points to 20% year-on-year while it had maintained its annual predictions for mass-market table and slot revenues at 11% and 15% respectively. He stated that Union Gaming Securities Asia Limited had moreover amplified its forecast for the firm’s full 2017 earnings before interest, taxation, depreciation and amortization to $274 million.