Nagacorp (3918) H2 2024 earnings summary

Executive summary

• Gross Gaming Revenue (GGR) rose 5.5% year-over-year to US$542.9 million, driven by a 17.2% increase in Mass Market GGR to US$395.0 million.

• Net profit declined 38.3% to US$109.6 million, mainly due to a non-cash impairment loss of US$89.1 million related to the Vladivostok Project.

• EBITDA was US$202.8 million, down from US$295.3 million, reflecting the impairment impact.

• Mass Market and Premium VIP segments contributed 94% of total gross profit, with a blended margin of 86%.

• No final dividend was declared for the year.

Financial highlights

• Revenue increased to US$562.5 million from US$533.2 million year-over-year.

• Gross profit improved to US$456.7 million, with an overall margin of 81% (2023: 79%).

• Basic EPS was US cents 2.48, down from US cents 4.02.

• Administrative and other operating expenses (before impairment, depreciation, and amortisation) rose 28.5% to US$172.5 million.

• Cash and bank balances stood at US$120.6 million; net assets at US$2.2 billion.

Outlook and guidance

• Cambodia's GDP growth is projected at 5.5% for 2024 and 5.8% for 2025, supporting long-term sector growth.

• The company remains optimistic about long-term prospects, leveraging tourism recovery and infrastructure expansion, including the new Phnom Penh airport opening in 2025.

• Ongoing government initiatives and regional collaborations are expected to boost international arrivals and business travel.