Naga 2 not undercutting NagaWorld
It’s been a good first quarter for Cambodian casino operator NagaCorp, with GGR up 181 percent due to a spike in the mass-market business. Mass table buy-ins rose 56 percent to $263.8 million and EGM increased 24 percent to $515.4 million. VIP volume was up 61 percent year-on-year to $5.6 billion, but down from the fourth quarter of 2017, reported Asia Gaming Brief.
Union Gaming analysts said Naga 2, which opened last November, has not siphoned off mass players from NagaWorld; in fact, Naga 2 may be justified in adding supply on the mass side.
“It is observed that there is minimal cannibalization observed between the two properties, with most players on existing NagaWorld property intact or increased and Naga2 witnessing numerous new faces and customers never seen in the past,” according to the Union Gaming note.
NagaCorp reported an increase of business at both properties but especially Naga 2, “where customers demand more tables and higher table limits.
“An increased number of South East Asian players, noticeably from Thailand, have also been observed in addition to the traditional large number of Malaysian and other customers from the regions,” said the company.
In March, NagaCorp signed an incentive agreement with Macau-based junket operator, SunCity, which should stoke VIP business going forward.
International arrivals to Cambodia, meanwhile, increased 12 percent to almost 597,000 compared to the prior-year period. In particular, visitation from China increased by 91 percent to 153,200 visitors.
“As a result, the average daily foot traffic of the overall property has increased significantly and has helped the mass market business. It is observed that the month of March 2018 has seen noticeable increase of visitors compared to January 2018 and this has put significant pressure on the planned limited supply of number of mass market tables,” said the company.
