NagaCorp, a Cambodian gaming operator, still managed to secure a total profit of $101.4 million (£73.2 million/€85.4 million) in its financial year 2020, despite its gambling establishments being compelled to shut down due to the Covid-19 outbreak.
NagaCorp Achieves Annual Profit Despite Covid-19 Casino Closures
Income for the 12 months concluding December 31 was $878.7 million, a decrease of 49.9% from $1.76 billion the previous year, as the NagaWorld resort in Cambodia was forced to close from April to July due to national Covid-19 restrictions.
Traditional table games were NagaCorp’s primary source of income, generating $787.3 million of total revenue in 2020. Electronic table game revenue reached $82.4 million, while hotel accommodations, food and beverage, and other revenue reached $9.1 million.
However, the suspension of operations led to a reduction in the cost of goods sold to $451.7 million, half of the $909.2 million recorded the previous year. This resulted in a gross profit of $427 million, a decline of 49.6% year-over-year.
Full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) were $265.2 million, aided by relatively normal operational activity in the first quarter before Covid-19 measures took full effect.
Other operating expenses decreased by 8.4% to $205 million.
NagaCorpss earnings in 2020 reached $30 million, while administrative expenses stayed at $61.1 million. After factoring in $33.2 million in financial charges, pre-tax earnings were $132.1 million, a 76.1% decrease from 2019.
NagaCorps paid $29.8 million in taxes that year, leading to a total profit of $102.3 million. After incorporating an $894,000 loss due to currency fluctuations related to international operations, the operator finished 2020 with a total profit of $101.2 million, an 80.6% decline year-over-year.
Despite the substantial decrease in NagaCorpss profits, the operator stated that the successful reopening of its flagship resort, NagaWorld, suggests that the business will rebound in the long run.
“Since the resumption of casino operations on July 8, NagaCorpss mass market segment has recovered to approximately 95%, while the VIP market segment has recovered to around 69%,” NagaCorp stated.
“The satisfactory recovery in gaming volume and revenue is largely attributed to the sizeable expatriate community, as well as travelers from East Asia (primarily China, Korea, and Taiwan) who are increasingly patronizing NagaWorld for entertainment.
“Looking ahead, the company believes that the distribution of vaccines, and the eventual anticipated gradual reopening of borders across Asia, is likely to further enhance Cambodia’s economy and tourism sector, which is expected to have a positive effect on the Group’s business.”
Picture: Christophe95 from Wikimedia Commons
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