Gaming Revenue and Market Performance - Gaming revenue increased by 15.5% to 514.8millionin2023,comparedto445.9 million in 2022[1] - High-end VIP market turnover increased by 46.5% to 4.3billionin2023,drivenbyhighervisitornumbersandaverageturnoverpervisit[1]−ReferralVIPmarketgamingrevenueroseby67.644.2 million in 2023, supported by a 52.3% increase in business volume[1] - Mass market daily turnover recovered to 82.3% of pre-pandemic levels, with a 7.2% year-on-year increase in 2023[6] - High-end VIP market daily turnover recovered to 97.7% of pre-pandemic levels, with a 46.2% year-on-year revenue growth in 2023[7] - Referral VIP market revenue grew by 67.6% in 2023, supported by a 52.3% increase in turnover[8] - Casino operations revenue increased to 387.52millionin2023,upfrom321.57 million in 2022, representing a 20.5% growth[18] - Casino segment profit grew to 326.62millionin2023,up19.3273.85 million in 2022[30] - Reported segment revenue increased to 538.3millionin2023,up15.4466.3 million in 2022[31] - The mid-market segment's daily revenue increased by 7.2% year-on-year to 9,900,000,recovering82.311,700,000, recovering 97.7% compared to the pre-pandemic peak year of 2019[45] - The mid-market and high-end VIP market segments contributed approximately 91.4% and 93.9% of the company's total gaming revenue and gross profit, respectively[45] - Mid-market (hall tables and electronic gaming machines) revenue increased by 9.4% and 6.1% respectively, driven by a large expatriate community, ASEAN tourists, and a rebound in Chinese tourists[57] - High-end VIP market turnover increased by 46.5% to 4.3billion,withawinrateof3.8133.6 million in revenue, a 46.2% year-on-year increase[58] - Referral VIP market turnover grew by 52.3% to 1.9billion,withawinrateof2.344.2 million in revenue, a 67.6% year-on-year increase[59] - Total gaming revenue reached 514.8million,withnetgamingrevenueat443.45 million, representing a 15% and 13% year-on-year increase respectively[56] - Mid-market contributed 63% of total revenue (337million)withagrossmarginof89133.6 million) with a gross margin of 72%[60] - Referral VIP market contributed 8% of total revenue (44.2million)withagrossmarginof2418.4 million) with a gross margin of 84%[60] - Total revenue for the year was 460.7million,withthemid−marketsegmentcontributing328.1 million (71%) and the high-end VIP market contributing 91.4million(20177.7 million in 2023, up from 107.3millionin2022[1]−EBITDAgrewby20.3295.3 million in 2023, with an EBITDA margin of 55.4%[1] - Revenue for the year 2023 increased to 533.247million,upfrom460.693 million in 2022, representing a growth of approximately 15.7%[11] - Gross profit rose to 421.636millionin2023,comparedto375.966 million in 2022, reflecting an increase of about 12.1%[11] - Operating profit for 2023 was 198.676million,asignificantincreasefrom131.722 million in 2022, marking a growth of approximately 50.8%[11] - Net profit attributable to the company's owners reached 177.732millionin2023,upfrom107.254 million in 2022, showing a growth of about 65.7%[11] - Basic earnings per share increased to 4.02 cents in 2023 from 2.42 cents in 2022, reflecting a growth of approximately 66.1%[11] - Total comprehensive income for the year 2023 was 175.319million,comparedto106.554 million in 2022, indicating a growth of about 64.5%[12] - Pre-tax profit for 2023 was 177.73million,asignificantincreasefrom107.25 million in 2022, marking a 65.7% growth[25] - Pre-tax profit surged to 178.0millionin2023,a65.6107.5 million in 2022[31] - Net profit increased by 65.7% to 177,700,000,andEBITDAgrewby20.3295,300,000 in the current year[44] - Net profit attributable to shareholders was 177.7million,withanetprofitmarginof33.3177,732 thousand in 2023, up from 107,254thousandin2022,representingasignificantgrowth[73]−EBITDAfor2023reached295,338 thousand, compared to 245,416thousandin2022,showingastrongfinancialperformance[73]CashFlowandFinancialPosition−Cashandbankbalancesincreasedsignificantlyto367.6 million as of December 31, 2023, up from 175.2millionin2022[9]−Netdebtstoodat103.4 million as of 2023, with a net debt-to-equity ratio of 5.1% and a net debt-to-EBITDA ratio of 0.35x[9] - Current assets increased significantly to 409.531millionin2023from229.964 million in 2022, representing a growth of approximately 78.1%[13] - Total equity rose to 2,024.646millionin2023,upfrom1,849.327 million in 2022, reflecting an increase of about 9.5%[13] - Total assets increased to 3.15billionin2023,up5.42.99 billion in 2022[30] - Total assets grew to 2.75billionin2023,up6.22.59 billion in 2022[31] - Cash and bank balances (including restricted bank balances and time deposits) totaled 367.6million,asignificantincreasefrom175.2 million in 2022[68] - The company's net asset value increased to 2.0billion(2022:1.8 billion), and the asset-to-liability ratio improved to 5.1% (2022: 15.9%)[68] - The company's cash and fixed deposits stood at 367.6millionasofDecember31,2023,supportedbybusinessrecoveryandprudentcashmanagement[50]−Thecompany′sdebt−to−equityratioimprovedsignificantlyto5.180 million loan at an 8% annual interest rate to refinance and partially repay 472.2millionin2024seniornotesdueinJuly2024[50]CapitalExpendituresandInvestments−Capitalexpendituressignificantlydecreasedto39.93 million in 2023 from 243.71millionin2022,an83.639.9 million in 2023, an 83.6% decrease from 243.8millionin2022[33]−Thecompanyinvestedatleast350 million in a Russian gaming and resort project through an investment agreement[35] - The Naga 3 project's foundation and underground floors are expected to be fully completed by Q1 2024[74] - The company has indefinitely suspended the development of its Vladivostok gaming and resort project due to force majeure events[74] Dividends and Share Issuance - The company did not declare any interim or final dividends for 2023, compared to 64.35millionindividendsdeclaredfor2022[23][24]−Issuedandfullypaidordinarysharesincreasedto4.42billionin2023from4.38billionin2022[41]−Thecompanyissued40,853,806sharesunderthescripdividendschemetopay1000.804 per share (or HK6.232pershare)[42]−Thecompanyissued40,853,806newordinarysharesunderascripdividendschemetopay1004.9 billion in 2023, a 22% year-on-year increase, with China accounting for two-thirds of the total investment[47] - Cambodia's economy is recovering steadily, with tourism identified as a key driver for GDP growth, supported by infrastructure investments and regional trade agreements[75] - The opening of new airports, such as Siem Reap Angkor International Airport and Phnom Penh Techo Takhmao International Airport, is expected to boost international tourism in Cambodia by 2025[75] - Cambodia has implemented the "China Ready" strategy to attract Chinese tourists, including allowing the use of RMB in hotels, restaurants, and tourism services[76] - The company expects a surge in demand driven by the recovery of international tourism and increased flight frequencies, benefiting NagaWorld's property traffic[76] - The company remains optimistic about its long-term prospects, with NagaWorld positioned to benefit from Cambodia's overall economic growth and tourism recovery[77] Corporate Social Responsibility (CSR) and Environmental Initiatives - NagaWorld has organized over 660 corporate social responsibility (CSR) activities since 2014, involving approximately 6,700 employees[52] - The company's fire safety awareness initiative has engaged over 11,000 community participants and donated 28 fire extinguishers[52] - NagaWorld Kind Hearts recycled over 1,600 kg of soap, benefiting nearly 460 families, and recycled over 130 kg of used batteries in 2023[53] - NagaWorld Kind Hearts planted approximately 1,300 trees in Kampong Speu as part of its environmental conservation efforts[53] - NagaWorld received multiple international awards, including the Stevie® Award for Corporate Social Responsibility and the ESG Icon Recognition Award[54] Operational and Administrative Expenses - Administrative and other operating expenses (excluding impairment losses, depreciation, and amortization) decreased by 3.2million(2.4134.3 million[62] - The company employed 6,038 staff (2022: 6,398), with total employee costs of 88.4million(2022:87.4 million)[69] - The company's financing costs for the year were 20.7million(2022:24.3 million), related to interest expenses and transaction costs for the 2024 senior notes[63] - Financing costs decreased to 20.71millionin2023from24.26 million in 2022, a 14.6% reduction[19] Trade Receivables and Other Financial Metrics - Trade receivables (net of impairment) increased to 13.8millionin2023from9.1 million in 2022[36] - Trade receivables increased from 9.1millionto13.8 million, with no impairment losses recognized during the year (2022: 2.4million)[71]−Thecompanyrepurchased77,845,000 of the 2024 senior notes at a purchase price between 91.83% to 92.10%, resulting in 472,155,000ofthe2024seniornotesremainingoutstanding[43]−Thecompany′ssharesheldthroughtheStockConnectprogramreached25.7millionasofFebruary15,2024,reflectingincreasedliquidityandinvestorinterest[51]Non−GamingRevenueandOtherBusinessSegments−Non−gaming(hotel,dining,andentertainment)revenueincreasedby24.5421.6 million, with an overall gross margin of 79% (2022: 82%). The mid-market segment maintained a high gross margin of 89% (2022: 90%)[61] Accounting and Financial Reporting - The company adopted new or amended International Financial Reporting Standards (IFRS) effective from January 1, 2023, which impacted the accounting policy disclosures but did not affect the measurement, recognition, or presentation of any items in the financial statements[15] - Non-current assets decreased slightly to 2,341.325millionin2023from2,359.692 million in 2022, a reduction of approximately 0.8%[13] - Non-current assets in Cambodia decreased slightly to 2.05billionin2023from2.08 billion in 2022[32] - Intangible assets, including casino license premiums, stood at 123.0millionwithaccumulatedamortizationof63.2 million[34]
