NagaCorp Ltd.: history, ownership, mission, how it works & makes money

A Brief History of NagaCorp Ltd.

NagaCorp Ltd. is a leading gaming and hospitality company based in Cambodia. Established in 1995, it operates the NagaWorld integrated resort in Phnom Penh. The company was the first to obtain a casino license in Cambodia, marking a significant milestone in the country’s gaming industry.

In its early years, NagaCorp focused on developing its casino and entertainment facilities. By 2006, NagaWorld had expanded significantly, positioning itself as a prominent player in the region. The company was listed on the Hong Kong Stock Exchange in 2006, raising approximately USD 104 million through its initial public offering (IPO).

As of 2021, NagaCorp reported revenues of USD 322 million, reflecting a recovery phase post-COVID-19 pandemic. The EBITDA for the same year stood at USD 142 million, showcasing a robust operational performance. The net profit for 2021 was approximately USD 56 million, indicating a year-on-year increase.

NagaWorld is known for its expansive gaming options, which include tables for various card games, slot machines, and other gaming activities. As of the latest reports, NagaWorld hosts over 2,200 slot machines and more than 150 gaming tables. The venue also offers hotel accommodations, dining, and entertainment options, making it a multifaceted destination.

The COVID-19 pandemic significantly affected NagaCorp's operations, with temporary closures and restrictions impacting foot traffic. However, the company improved its health and safety protocols, focusing on local tourism as travel restrictions were imposed. By 2022, NagaCorp reported a steady increase in visitor numbers, reaching approximately 1.2 million visitors annually, with an expected growth trajectory as international tourism resumed.

Moreover, NagaCorp has been working on diversifying its offerings. In 2022, the company announced plans to develop Naga 3, an extension that includes additional gaming facilities and luxury accommodations. Investment for Naga 3 is projected to be approximately USD 3 billion upon completion, aimed at enhancing its capacity and market reach.

NagaCorp also emphasizes corporate social responsibility, contributing to various local initiatives. In 2021, the company made significant donations to health and education in Cambodia, amounting to around USD 2 million to support pandemic relief efforts.

The company's strategic focus on expansion and community investment positions it well within the Asian gaming market, appealing to both local and international customers. NagaCorp continues to adapt to challenges while fostering growth through innovative developments and strong market presence.

A Who Owns NagaCorp Ltd.

NagaCorp Ltd is a prominent gaming and entertainment operator based in Cambodia, primarily known for its flagship property, NagaWorld. The ownership structure of NagaCorp is characterized by significant holdings from key individuals and institutional investors.

As of the latest available data, the CEO and substantial shareholder, Dr. Chen Lip Keong, owns approximately 64.49% of the company. Dr. Chen has played an influential role in the company's development and strategy since its inception. His stake reflects his commitment to NagaCorp's long-term success.

In addition to Dr. Chen's holdings, other substantial shareholders include various institutional investors. The following table outlines the major shareholders of NagaCorp Ltd:

As of the end of 2022, NagaCorp reported a revenue of approximately USD 414 million, which represented a recovery from the pandemic's impact. The company’s net profit was around USD 98 million, showing the resilience of its business model in the gaming and entertainment sector. The company has consistently paid dividends, with a dividend yield of approximately 2.5% as of Q1 2023.

In terms of market performance, NagaCorp's stock closed at HKD 8.75 on October 1, 2023, reflecting a year-to-date increase of 35%. This uptick is attributed to the recovery of tourism and increased visitor numbers in Cambodia, alongside successful marketing strategies and expansion plans.

NagaCorp operates under a unique licensing agreement with the Cambodian government that grants it exclusive rights to operate casinos in the capital, Phnom Penh, until 2035. This strategic positioning provides a competitive advantage in the Southeast Asian gaming market.

Overall, NagaCorp Ltd. has a robust ownership structure led by Dr. Chen Lip Keong, supported by prominent institutional investors and a strong financial performance that highlights its potential for growth within the region's burgeoning gaming industry.

NagaCorp Ltd. Mission Statement

NagaCorp Ltd. focuses on being a premier integrated resort operator in Cambodia, specifically in Phnom Penh. Established in 1995, the company emphasizes providing quality entertainment, hospitality, and gaming experiences. They aim to enhance the lifestyle of their guests and contribute positively to the local economy while ensuring sustainable operations.

The mission statement highlights several key elements:

• Delivering exceptional customer service and entertainment value.
• Creating a safe and welcoming environment for patrons.
• Supporting community development and sustainable tourism.
• Maximizing shareholder returns through operational excellence and strategic growth.

NagaCorp operates NagaWorld, the largest hotel-casino complex in Cambodia, which serves as a cornerstone of their mission. NagaWorld offers over 1,700 gaming tables and machines, alongside multiple dining options, entertainment venues, and hotel accommodations.

According to their 2022 financial results, NagaCorp achieved a revenue of $293 million, a significant increase from $178 million in 2021, indicating a strong recovery post-pandemic. The net profit for 2022 was approximately $97 million, up from $50 million the previous year.

The company has also focused on expansion, with plans to develop Naga 3, a new integrated resort projected to cost around $3.5 billion. This project aims to increase the entertainment offerings significantly and enhance their market position.

As of October 2023, NagaCorp's stock was trading at approximately $0.90 per share, reflecting a year-to-date growth of around 15%. The company maintains a strong focus on innovation and the adoption of new technologies to enhance customer engagement.

NagaCorp remains committed to its mission through strategic partnerships and community involvement. This includes initiatives aimed at supporting local charities and tourism development, further solidifying its reputation as a socially responsible operator in the gaming and hospitality industry.

How NagaCorp Ltd. Works

NagaCorp Ltd. is a leading integrated gaming and entertainment company located in Phnom Penh, Cambodia. It primarily operates NagaWorld, the largest casino and hotel complex in the country, serving both domestic and international markets. The business model encompasses a diverse range of activities, including gaming, hotel services, and entertainment offerings.

Gaming Operations

NagaCorp generates a significant portion of its revenue from gaming operations, which include both table games and electronic gaming machines. As of the latest reports, NagaWorld features over 1,500 gaming tables and 3,000 electronic gaming machines.

The company's gaming revenue has shown resilience, with a 46% growth year-on-year from the previous year's revenue of approximately $221 million. This growth can be attributed to the recovery post-pandemic, as restrictions were lifted and tourism began to rebound.

Hotel and Amenities

NagaWorld also operates a hotel within its complex, offering over 1,600 hotel rooms. The hotel contributes to the overall revenue, providing accommodation for both leisure and business travelers, further enhancing the customer experience.

The hotel's occupancy rate stands at 75%, with an average daily rate of $150, reflecting a strong demand for hospitality services connected to the gaming sector. The dual focus on gaming and hotel operations allows NagaCorp to optimize revenue generation throughout the year.

Entertainment and Leisure

In addition to gaming and hospitality services, NagaCorp invests in entertainment options. The company hosts various performances and events that attract visitors, further enhancing its market appeal.

The entertainment segment contributed approximately 15% of total revenue in 2022, which amounted to around $45 million, reflecting both the cultural and leisure aspects of the complex.

Financial Performance

As of the last reported quarter in Q2 2023, NagaCorp recorded a revenue of $90 million, with a net profit margin of 20%. The EBITDA for the same period was reported at $30 million, driven primarily by increased foot traffic and gaming activity.

The strong financials indicate a solid recovery trajectory and effective operational management. The increasing trend in both revenue and profitability underscores the company's efficient cost management strategies and robust demand for leisure services.

Market Presence and Strategy

NagaCorp's strategic positioning involves catering to both high-rollers and mass-market players, widening its appeal across different segments. The company holds a monopoly on gaming operations in Phnom Penh until 2035, providing a significant advantage over potential competitors.

Furthermore, in 2023, NagaCorp announced plans for expansion, focusing on enhancing the gaming experience and upgrading facilities to attract more tourists from regional markets, including China and Vietnam.

Overall Market Impact

NagaCorp has a significant impact on the local economy, with a direct influence on tourism. In 2022, it reported that approximately 2.5 million visitors passed through its doors, contributing to local employment and services.

In conclusion, NagaCorp Ltd. operates a multifaceted business model that integrates gaming, hospitality, and entertainment, making it a key player in the Cambodian market with a strong outlook for continued growth and profitability.

How NagaCorp Ltd. Makes Money

NagaCorp Ltd. is a prominent gaming and leisure company based in Cambodia, primarily operating the NagaWorld integrated resort in Phnom Penh. The company generates revenue through various segments, including gaming operations, hotel accommodations, and entertainment services. Below is a detailed overview of how NagaCorp Ltd. monetizes its assets and services.

Gaming Revenue

The bulk of NagaCorp's income comes from gaming operations, which include gaming tables and electronic gaming machines. For the year ending December 31, 2022, the company reported gaming revenue of approximately $370 million, reflecting a significant recovery post-pandemic.

The breakdown of gaming revenue for 2022 is as follows:

NagaCorp's VIP segment, which caters to high-rollers, consistently provides a substantial portion of total gaming revenue. As of the end of 2022, the company maintained a solid win rate of around 2.85% for its VIP gaming segment.

Hotel Accommodations

Alongside its gaming operations, NagaCorp generates substantial revenue through its hotel services. The NagaWorld complex features over 1,600 hotel rooms, contributing to the company’s non-gaming revenue stream. In 2022, hotel revenue was approximately $60 million, with an occupancy rate reaching around 75%.

Dining and Entertainment Services

NagaCorp also profits from dining and entertainment services within its resort. This includes restaurants, bars, and various entertainment options such as live performances and cultural shows. In the fiscal year 2022, dining and entertainment revenues were reported at about $40 million.

Market Trends and Strategic Developments

The recovery of tourism in Southeast Asia, particularly in Cambodia, has bolstered NagaCorp's financial performance. The company's strategic focus on enhancing its offerings, including plans to expand the NagaWorld complex, is projected to attract more visitors and increase overall revenue streams.

NagaCorp’s market capital as of October 2023 stands around $2.2 billion. The company also experienced a stock price increase of approximately 35% during the first three quarters of 2023, reflecting investor optimism about its growth prospects.

Overall, NagaCorp Ltd. effectively combines its gaming, hospitality, and entertainment operations to create a diversified revenue model. This multifaceted approach positions the company to capitalize on the growing tourism sector in Cambodia and the broader region.