Saturday, February 18, 2017

NagaCorp announces full year 2016 earnings

NagaCorp website:

EBITDA increased 12% to US$256.1 million

VIP Rollings increased 11% to US$8.7 billion

Mass Market table buy-ins increased 12% to US$617.8 million

Mass Market electronic gaming machines bills-in increased 9% to US$1.5 billion

60% Dividend Payout Ratio: A final dividend for shareholders and a distribution for holders of the Convertible Bonds of US cents 0.82 per share/conversion share (or equivalent to HK cents 6.36 per share/conversion share) has been recommended. The proposed final dividend and distribution and the interim dividend and distribution for the six months ended 30 June 2016, in the aggregate amount of US cents 3.59 per share/conversion share (or equivalent to HK cents 27.82 per share/conversion share) represents a dividend and distribution payout ratio of 60% based on the net profit generated for the year.

NagaCorp owns the NagaWorld hotel/casino complex in downtown Phnom Penh. You can read my investment thesis on NagaCorp here. Suffice to say the company has a government mandated monopoly on gaming with 200km of Phnom Penh. The company expects the second phase of the their NagaWorld expansion to open later in 2017.

I think this is a great way to play the expanding Cambodia economy and the continued growth in tourist traffic to the country.

In fact 2016 was a record year for Cambodia's tourism sector.

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