Logo of Phnom Penh Post newspaper Phnom Penh Post - Nagaworld strikes it lucky

Nagaworld strikes it lucky

Nagaworld strikes it lucky

110216_7a
Naga World rises above Phnom Penh on Monday. The capital's sole casino saw its profits increase by 73 percent last year .

Net profits at Phnom Penh’s sole licensed casino NagaWorld increased by 73 percent last year to US$44.1 million, according to interim annual results which outlined an aim to finish construction on its third wing this year.

Rising profits came from growth of its public floor and gaming machines areas “which resulted in a healthier, more efficient and profitable business mix”, parent company NagaCorp said in its annual results filing on the Hong Kong exchange.

“During this period, 64 percent of our total revenues were derived from these segments, compared to 55 percent for the same period in 2009,” it said.

NagaWorld aims to appeal to the mass market with its third wing, currently under construction, with completion expected for later this year.

The project will house a swimming pool, a health club, offices, and some 220 hotel rooms.

“The hotel rooms will be positioned at a lower price point to appeal to a wider segment of our casino guests,” it said.

The casino and hotel is keen to push for greater regional market share by increasing its mass market appeal in 2011. It claims to have “remodeled” its business partly due to increased tourist arrivals
to Cambodia, while adopting a more conservative approach to junkets.

“This remodelling has focused on a shift in our business mix and has meant build-up of our public floors and gaming machines, driven by market demand,” it said.

It increased the number of slot machines to 1,032 at the end of 2010, from 618 a year earlier.

The firm also adopted a more conservative credit policy and lowered its table limit in 2009 for its junket business.

Junket floor revenues stood at $54 million in 2010, a slight increase on $53.3 million in 2009. Some 7,928 patrons visited the junket floor last year, from 11,368 the year previous.

Ministry of Economy and Finance figures obtained last month showed the Kingdom’s tax revenue from the 20 domestic casinos contributed $16 million to state coffers last year, an increase on $13 million in 2009.

However, some in the industry warned that the gambling sector faces challenges, with further border casinos likely to close. Winn casino in Bavet near the Vietnam border closed in September of last year, while VIP casino shuttered in November.

NagaWorld owns the only licence for operating a casino in Phnom Penh, it said, adding the continued closure of other slot machine and sports betting stations [banned in the capital] had contributed to growth.

MOST VIEWED

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Phnom Penh curfew starts today

    A two-week curfew from 8pm to 5am starts today in Phnom Penh, a day after a sub-decree detailing administrative measures to contain Covid-19 was issued by Prime Minister Hun Sen. “Travelling in Phnom Penh is temporally banned between 8pm and 5am,” said Phnom Penh governor

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants