Naga World profits Double to $98 Million
NagaCorp, which owns Phnom Penh’s only licensed casino, announced on Wednesday that net profits at the company had more than doubled in 2011 and that plans are in store to expand its operations in the country.
Financial results filed with the Hong Kong Stock Exchange show that NagaCorp made a net profit of $92 million in 2011 compared to $44 million in 2010, the highest profit recorded by the company since it went public in 2006.
Revenues totaled $223.8 million, a 49 percent increase on the previous year. According to the results, the largest portion of revenues $80 million was made from gamblers on VIP trips, known as junkets.
A total of $3.2 billion was gambled at junket tables in the casino by 16,019 visitors, that is an average of more than $200,000 per player.
Because it is illegal for Cambodians to gamble at domestic casinos, NagaWorld says that it draws in the wealthy from around the region to play at its tables.
The company believes it has only just begun to tap into the junket market, especially within the burgeoning economies of Vietnam, China and Thailand, the company said in its annual report.
The report also said that share holders had agreed at a meeting on January 30 to acquire two companies owned by NagaCorp’s Malaysian CEO Chen Lip Keong for a total of $369 million.
Those firms have plans to build a “hotel and gaming complex, a retail walkway and a tourist park” at a site next to NagaWorld casino, the report said.
NagaCorp was granted a 70-year casino license by the government in 1995 and has the exclusive right to operate casinos in Phnom Penh and the surrounding area.