NagaCorp (3918.HK)
Alert: Solid VIP and Mass Growth in 3Q14
3Q14 GGR +23% YoY – NagaCorp reported its 3Q14 Key Performance Indicators
(KPIs). Gross Gaming Revenue in 3Q14 improved 23% YoY, tracking ahead of our
FY14 forecast of 18% YoY growth. Mass drop improved 17% YoY (vs +15% YoY in
FY13). 9M14 mass growth of 21% is largely in-line with our 20% YoY FY14 growth
forecast. Slot/EGT volumes improved 16% YoY, better than our expectation. VIP
rolling volume growth accelerated to 32% in 3Q (vs. 14% in 1Q and 25% in 2Q),
likely showing signs that Naga’s VIP initiatives are increasing volumes at the casino.
Figure 1. NagaCorp – Quarterly KPIs (US$’000)
US$'000 3Q13 4Q13 1Q14 2Q14 3Q14 YoY %
Public Floors Gaming Tables Buy-ins 97,526 110,564 115,647 119,509 114,311 17.2%
Electronic Gaming Machines Bills-in 268,065 272,065 273,250 301,655 311,319 16.1%
Junket VIP Rollings 1,254,008 1,305,721 946,097 1,475,943 1,657,107 32.1%
Gross Gaming Revenue 74,213 108,986 76,875 103,462 91,528 23.3%
Source: Company Report; Citi Research
Cambodia International Tourist Arrivals +4.5% in 7M14 – Cambodia’s Ministry of
Tourism reported international arrivals in July 2014 were largely flat at +0.4% YoY.
YTD, total international arrivals reached 2.5m visitors, +4.5% YoY. Visitors from Asia
accounted for 75.9% of the 7M14 arrivals (vs 72.0% a year ago), in which the top
three markets represented 42.4% of the total. During 7M14, visitation from China
improved by 19.0% YoY, while visitation from Vietnam and South Korea softened by
3.0% and 0.1% YoY, respectively. YTD, Vietnam accounted for 19.4% of total
visitation, followed by China at 12.5%, and Korea at 10.5%. Outside of Asia, the US
was the largest source of international arrivals (up 2.7% YoY) and contributed 4.6%
of the total, followed by France at 3.3% and the UK at 3.2%.
Visitors arriving by air accounted for 51.4% of the total in 7M14, +13.2% YoY, likely
reflecting the strong traffic from China. Meanwhile, 46.6% of international visitors
arrived by land (-4.2% YoY). Only 2% of visitors arrived by sea.
