NagaCorp 1H profit slips 3pct as VIP weakness offsets mass growth

Cambodian casino operator NagaCorp Ltd reported a net profit of US$144.0 million for the first half of 2026, down 3.2 percent from a year earlier. Group revenue for the first six months of 2026 declined 8.4 percent year-on-year, to about US$313.2 million, according to a Monday filing to the Hong Kong Stock Exchange. Gross gaming revenue (GGR) fell 8.6 percent, to nearly US$303.7 million. The group’s earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at US$195.4 million in the six months to June 30, down 2.4 percent from the prior-year period. NagaCorp declared an interim dividend of US$0.0098 per share, due to be paid on September 28. The aggregate cash dividend amounts to US$43.2 million, representing a payout ratio of 30 percent of first-half net profit, the company said. NagaCorp has a casino monopoly running to the end of 2045 for the Cambodian capital, Phnom Penh, where it operates the NagaWorld casino complex (pictured). The firm said the decline in overall GGR was “primarily due to a significant loss of momentum in the VIP market segment”. Mass-market GGR, including table games and electronic gaming machines (EGMs), increased 2.7 percent year-on-year to US$238.3 million, from US$232.1 million. Mass-market table revenue rose 2.8 percent year-on-year to US$166.4 million. Table buy-ins were up 0.4 percent to US$711.0 million, while the win rate improved to 23.4 percent, from 22.9 percent in the prior-year period. Revenue from EGMs increased 2.6 percent year-on-year to US$71.9 million, on bills-in that rose 9.0 percent to nearly US$1.55 billion. NagaCorp said combined mass-market business volumes increased by 6.2 percent year-on-year, reflecting “sustained player engagement and visitation”. The casino operator noted however that it had observed “a moderation in business momentum” during the second quarter. It said the slowdown was believed to be “primarily attributable” to the FIFA World Cup football tournament, as match schedules coincided with the casino’s peak operating hours and likely diverted customer attention from its gaming floors. VIP softness The VIP business recorded a significantly weaker performance, according to Monday’s update. Revenue from the house-managed VIP segment – which NagaCorp calls “premium VIP” – fell 21.4 percent year-on-year, to circa US$53.9 million. Rolling volume declined 50.2 percent to US$1.69 billion, although the win rate improved to 4.1 percent from 3.1 percent. VIP revenue from the “referral” segment declined 63.9 percent year-on-year, to US$11.5 million, on rolling volume of US$361.6 million, down 67.6 percent. The segment recorded a win rate of 3.2 percent, compared with 2.8 percent a year earlier. NagaCorp attributed the VIP slowdown to a number of factors, including weaker international travel demand, fewer direct international flights to Cambodia, higher airfares and what it termed “negative international perceptions associated with online scam activities in Cambodia”. The firm said those factors had particularly affected high-end customers reliant on cross-border business and premium leisure travel. Despite the decline in revenue, the company’s EBITDA margin improved to 62.4 percent from 58.6 percent a year earlier, while its net profit margin rose to 46.0 percent from 43.5 percent. The company said the improvement reflected the greater contribution from higher-margin mass-market business. NagaCorp had cash and bank balances and fixed deposits of US$416.3 million as of June 30, up 11.8 percent from US$372.3 million at the end of 2025. The company fully repaid a US$70-million shareholder loan in May and had no outstanding borrowings at the end of the reporting period. The company said there had been “no material updates” regarding its Naga 3 expansion project during the first half of 2026.