CAMBODIA

Naga eyes further growth

NagaCorp says its pushing ahead with plans for the third phase of its IR in Phnom Penh after achieving strong success with Naga2, which opened in late 2017.

25The Hong Kong-listed company said Naga3 is already in the advanced planning stage. In the past, the company has said that a third stage would be likely to incorporate more non-gaming facilities, such as a water park, to appeal to the region’s growing middle-class family leisure market.

“In view of the success and fast ramp-up of Naga2 and often times facing capacity constraints for both gaming and non-gaming areas, increasing inbound tourism especially from China and the stable political environment, the group is in advanced stages of planning for the development of Naga3,” the company said in a filing to the Hong Kong Stock Exchange.

“Based on feedback from stakeholders, the group is confident that additional capacity is necessary to further fuel business growth (both gaming and non-gaming) to position the group as one of the most successful integrated resorts in Asia.”

In the nine-months to end September, gross gambling revenue almost doubled to $1.07 billion, with VIP rollings up 128 percent to $25.03 billion and mass table buy-ins up 57 percent to $887 million.

For Q3 alone, Union Gaming points out that mass gaming beat expectations, increasing by 64 percent in the period, while VIP underperformed its expectations with a 153 percent surge to $8.2 billion, below the firm’s forecast for $9 billion.

“Given the lumpiness of VIP we are not concerned by the delta,” it said. “Further, and similarly to mass tables, we generally expect 4Q to be stronger than 3Q. With increased junket awareness of Naga2, and some of the best commissions available in the whole of Asia, we expect this segment to continue to post better-than-Macau growth rates for the foreseeable future.”

Naga 2, designed by U.S. architects Steelman Partners, opened its doors in Nov. 2017.

The extension adds an extra 903 rooms, taking the total to 1,700, as well as MICE space and more than 3,800 square meters of duty free retail. It also elevates the service and entertainment offerings to a level not yet seen in Cambodia, with regular on-site performances both traditional and modern.

“Overall, the property is more modern, brighter and luxurious compared to Naga1 with interior design reminiscent of certain Macau Cotai buildings,” research house CIMB wrote in a report.

NagaCorp said it has seen minimal cannibalisation from Naga2, which is attracting a different clientele from its original property, which has retained its guests. The company is currently upgrading Naga1, with completion scheduled for next year.

Analysts say the outlook is positive, with strong economic growth and tourism arrivals.

Total international tourist arrivals increased by 11.1 percent to 3,455,716 visitors in the first seven months of 2018. Of the top 10 markets, China was the highest at 31.7 percent, followed by Vietnam, Lao PDR, Korea and Thailand.

Kelly Holding seeks lottery shakeup with blockchain platform

Kelly Holding Group, a Cambodia-based company, says it is developing a blockchain powered lottery platform aimed at “revolutionizing” the lottery industry.

The company said it is working on a “Taobao” platform, which allows users to design their own gaming rules, all of which will be guaranteed through blockchain technology. Through a decentralized structure, the platform would allow bankers to set their own rules through intelligent contracts and blockchain technology. Blockchain technology would also be used to encrypt currency, which would ensure the complete autonomy of funds and the safety of the users.

The CTO of Kelly Chuangfu Club said that the aim of establishing a blockchain based gaming platform is to break boundaries and let users become both gamers and investors.

Amax signs services accord for Sihanoukville casino

Amax International said a wholly owned unit had reached an HK$9 million ($1.1 million) accord to provide technical and pre-opening services to a casino in Sihanoukville, Cambodia.

The casino is owned by British Virgin Islands-incorporated Cheung Shing Global Travel Entertainment, which is owned by Amax Chairman Mr Ng Man Sun. Amax will provide the design, development and implementation of information technology systems; the overall casino design; the establishment of operational and internal control structures and the provision of headhunting and recruitment services.

It will also help with the procurement of all relevant licenses. The casino is expected to open in March next year.