10 Feb 2023

Naga’s FY22 revenue was up by 104% YoY to US$461m, mainly driven by 1) 207%/183%/87.8% YoY increase in mass market tables/mass market EGM/premium market given the fast recovery of international particularly ASEAN visitors to Cambodia and the continued growth in the local expatriate market, partially offset by 2) 59.1% YoY decline in referral VIP market due to the stringent cross-border travel policies in the Asian region especially in and out of China. Non-gaming revenue also went up strongly by 528% YoY due to the reopening of business operations since 15 Sept 2021 and the easing of restrictive measures in Cambodia and the surrounding regions. GPM increased by 18ppt YoY to 82% in FY22 on the back of higher revenue mix from the higher-margin mass market segment. Despite a huge surge of 162% YoY in FY22 GP to US$376m, admin cost and other operating expenses recorded a 19% YoY decline and 7% YoY increase respectively, showing very good cost control by the company. As a result, FY22 was able to sustain its 1H22’s turnaround and recorded a NP of US$107m, compared to a net loss of US$147m in FY21.

CROSBY Research – Nagacorp (3918 HK): Recovering from the pandemic