Naga Corp up 53pc on VIP performance in 2018

Hong Kong-listed casino operator and developer NagaCorp Ltd posted a 53.1% year-over-year increase in full-year net profit to $39.6 million in 2018. The growth came in a 54.9% increase in gross game sales (GGR) at its Naga World complex (pictured), to $1.43 billion, it said in a filing on Wednesday.

Nagakov said he achieved “strong business volume growth across all segments” in 2018, especially in VIP games that recorded “customer demand for higher table restrictions and rolling growth.” It also said “increased investment-related visits to Phnom Penh also contributed to the increase in VIP business volume.”

The group declared a final dividend of 0.0291 per share for the period, which will be paid on May 17, subject to shareholders’ approval at its annual general meeting scheduled for April 26.

“Net income for the year would have increased 100% except for the $60 million fee impact we earned in 2017 in connection with the allocation of licensing rights to certain investors to operate multiple electronic game consoles,” the company said. “The company prepared for demand but did not opt for a similar deal in 2018,” the company added.

“By 2019, all of the top four Macau mega-junkets will operate in Naga 2,” Nagakov predicted. Nagakov did not identify the four junket operators mentioned, but added Suncity Group’s Naga 2 operations “will be relocated to a larger and more desirable location in the first quarter of 2019.”

Investment analysts say Suncity Group is one of the largest VIP gambling organizations in Macau.

Guangdong Group, a Macau-based junket operator, confirmed to GGRAsia last month that it was expanding its VIP gaming service to Naga 2. In a written response to GGRAsia, the junket company noted that it would be in the trial phase from “early January” for its newly launched service, which it partners with other investors in Naga 2 at the time.

Earlier this month, Takchun Group, another leading Macau investor in gambling junkets, announced that it was preparing to open a VIP gaming club at the Nagaworld casino resort complex in “mid-February.” The announcement did not clarify whether the new club was originally in the Nagaworld building or nearby Nagaworld 2.

“Nagakov continues to beat expectations as demand is very robust in all gaming segments and in both properties,” Union Gaming Securities Asia Ltd analyst Grant Govtsen said in a note released after the casino operator’s results were announced.

He added: “Naga Corp, which was the best-performing gaming stock globally in 2018, remains our top ranking, and we expect to continue to spur Naga2 to reach its full potential during 2019. Naga still has numerous growth levers as well as green field developments (e.g., Naga3) in the coming years.”

BY: 슬롯사이트

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