CAMBODIA

Like the majority of other properties across Asia, NagaWorld has closed its doors to halt the spread of the coronavirus. However, it was one of the later operators to turn out the lights and before doing so reported “relatively stable” financial results in the first quarter of 2020 “despite such challenging times,” including a 15 percent year-on-year advance in gross gambling revenue.

GGR for the quarter reached nearly US$369 million, most of which came from VIPs.

GGR for the VIP business increased by 25 percent and rollings increased by 18 percent, generated mainly from players coming from North Asia and some from South East Asia, it said.

The Hong Kong-listed company noted it had benefited as junket operators with bases in its Naga 2 property continued to bring in VIP players, while IRs in Macau, the Philippines and Malaysia all closed.

“NagaWorld was the only casino in the Asia Pacific region where there was relative ease of entry to the casino without much administrative difficulty and yet having all the protective measures against the Covid-19 in place, both at the level of Cambodia and at the level of the company.”

NagaCorp was founded 25 years ago by Malaysian tycoon, Tan Sri Dr Chen Lip Keong, and has expanded to become one of the most successful casino groups in Asia. The operator has a monopoly position within a 200km radius of the Cambodian capital Phnom Penh, which runs through to 2045.

The group opened Naga 2 in late 2017, doubling its capacity and also introducing a new standard of service and non-gaming entertainment to Cambodia. The new facilities drove significant gains in revenue, in particular in the VIP business.

Naga 3 is scheduled to be completed by 2025 and will increase the capacity of the combined complex by at least two times. It will feature 5,000 hotel rooms, 1,300 gaming tables and 4,500 electronic gaming machines. It is expected to be one of the largest integrated resort complexes in the world.

In its recent results announcement, the company gave no indication that the current crisis would create significant changes to its plans.

“Despite the Covid-19 fear, the group shall continue the development of Naga 3 and the expected successful completion of Naga 3 by 2025,” it said. “The company believes the long term prospects and outlook shall remain stable.”

In December, the company approved a new design concept, incorporating changes suggested by Chicago-based Skidmore, Owings & Merrill, which is working on the project alongside original architect, Steelman Partners.

Under the new design, the number of towers has been reduced from five to three to improve views for guests and to create a more “elegant look” on the Phnom Penh skyline. It will also now incorporate an Upper Podium from the 57 floor, which will include VIP gaming, but also a Marina Bay Sands-style swimming pool deck overlooking the Mekong River.

The three towers will rise from a mixed-use Lower Podium, which will be connected by a series of horizontal and vertical “streets.”

“This design will set a new standard for urban gaming resorts in Cambodia, and the world,” Naga said.

Cambodia’s casino market has seen an explosion in growth over the past few years. Although a large part of that expansion came from the fact that land-based casinos were able to host online operations up until January this year, there are still solid indicators underpinning the industry.

The local economy is estimated to have expanded by about 7 percent in 2019, driven by foreign direct investment. The total number of International tourist arrivals last year gained 6.6 percent to 6,610,592, led by the Chinese. The government is aiming to more than double China arrivals to 5.5 million by 2025, with a targeted marketing program and China-friendly service policies.

With signs that the Covid-19 situation in China may be stabilising, Cambodia expects to be one of the key beneficiaries once travel flows normalise.

Donaco International says it has settled its various legal disputes with its former Thai vendors for the Star Vegas casino in Poipet, including the proceedings in Singapore, Australia, Thailand, and Cambodia.

“The settlement reached provides certainty of tenure for the Star Vegas business and will conclude all disputes between the parties,” it said. “It will also allow the company and management to now focus on the forward momentum of the profitable Star Vegas business, and continued improvements to the company’s balance sheet and financial position ahead of any Covid-19 impacts to second half revenue and earnings.”

Donaco Chairman Mel Ashton commented, “We have reached a pragmatic and fair settlement of this long running dispute, in what we believe is a timely manner. Most importantly the remaining value of the Star Vegas business is retained for shareholders, and we do not expect any changes to the carrying value of the asset as a result of this settlement.”

TGB Charity, a subsidiary charity brand of BBIN, partnered with the Cambodian Children’s Fund (CCF) this year and donated US$40,000 to various educational projects to support vulnerable children in Cambodia.

The donation will be used by CCF to pay for children’s school fees, stationery supplies, various school subjects, and maintenance of school facilities.

Cambodian Children’s Fund is a local non-profit organization in Cambodia. Founded by Scott Neeson in the capital of Cambodia, Phnom Penh, in 2004, it specializes in providing a variety of important healthcare and education services to children who are living in poverty or have been maltreated.