Logo of Phnom Penh Post newspaper Phnom Penh Post - NagaWorld ’09 profits down

NagaWorld ’09 profits down

NagaWorld ’09 profits down

Despite drop, CEO calls numbers ‘solid’; Elixir also posts losses

ELECTRONIC gaming machine provider Elixir Gaming Technologies Inc has posted its ninth straight quarterly loss, but is seeing gradual improvement in its results thanks to its strong alliance with Phnom Penh’s NagaWorld Hotel and Casino, the company said.

The American Stock Exchange-listed Elixir posted a US$1.7 million net loss for the first quarter of 2010, an improvement on a $2.6 million loss in the fourth quarter and $6.2 million loss in the first quarter of last year, according to results released to AMEX Thursday.

The gaming machine operator has not yet managed to fully capitalise on the success of what it repeatedly hails as the driver of its revenue growth, the Hong Kong-listed NagaWorld, which holds a monopoly on gaming in Phnom Penh.

NagaWorld holds an exclusive licence to operate a casino within a 200-kilometre radius of the capital.

NagaWorld posted a $25.5 million profit for 2009, a 36.3 percent drop from its $40 million profit for 2008, according to its annual report released April 26.

In a statement, Naga-World’s CEO and Chairman Timothy McNally described the figures as “solid results” made in a “challenging” economic climate.

Elixir CEO and Chairman Clarence Chung has repeatedly singled out operations at NagaWorld over the last few quarters as a “strong contributor to the financial performance”.

Indeed, Elixir’s fiscal fortunes have improved quarter-on-quarter since entering the operator-partner relationship with the casino in early 2009.

In results released Thursday, Elixir said adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $1.3 million for the first quarter of 2010, up 64 percent from the previous quarter, and a turnaround from the negative adjusted EBITDA of $2.6 million for Q1 2009.

The gaming operator had $5.1 million in cash as of March 31, up from the $4.2 million on December 31, 2009.

“The increase in cash balance was the result of strong cash flow from our Naga operations,” Elixir Chief Accounting Officer Andy Tsui said in results webcast on Thursday.

Elixir plans to increase its total gaming seats in NagaWorld to 640 by July this year, up from 200 seats in January last year.

It currently has 590 seats in the Phnom Penh location, and 897 seats across six venues in the Philippines.

It recently signed an agreement with Cambodian casino-owner Grand Golden Co to place 60 seats at the new Grand Golden casino in Kampong Cham province near the Vietnam border. The deal is expected to be completed by November 2010.


  • Temi tourism project approved by the CDC

    The $500.4 million Tourism, Ecological, Marine and International (Temi) tourism project has been approved by the Council for the Development of Cambodia (CDC), according to a notice on its Facebook page on Monday. The project is part of Chinese-owned Union City Development Group Co Ltd’s (

  • Rainsy will return at ‘favourable time’

    Opposition figure Sam Rainsy on Saturday suggested he would not return to Cambodia as he had previously promised, saying that like liberators King Father Norodom Sihanouk and Charles de Gaulle, he would only do so at a “favourable time”. “I will go back to Cambodia

  • NagaWorld casino sees net profit of more than $390M last year

    Phnom Penh’s NagaWorld casino posted a 53 per cent net profit increase last year at $390.6 million, a sum which is almost equal to the combined net profit of all Cambodian commercial banks in 2017. NagaWorld’s parent company, NagaCorp Ltd, is listed on the Hong Kong

  • US Embassy urged to stop ‘disrespecting sovereignty’

    The Ministry of Foreign Affairs and International Cooperation called on the US Embassy in Phnom Penh on Saturday to respect the Vienna Convention on Diplomatic Relations after it called former opposition leader Kem Sokha “an innocent man” – a move deemed to be “disrespecting Cambodia’s