NagaCorp Reports $144 Million Profit Amid Mixed Gaming Performance

NagaCorp Ltd., the operator of Cambodia's largest casino resort NagaWorld, reported a net profit of $144 million for the first half of 2026, reflecting a 3.2% decrease from $148.8 million during the same period in 2025. This decline is primarily attributed to a significant drop in VIP gaming activity, which saw a 34.8% reduction in revenue, offset by growth in the mass-market gaming segment.

According to the company's report, gross gaming revenue fell by 8.6% year-on-year to $303.7 million, with net gaming revenue decreasing by 3.4% to $282.2 million. Despite these figures, the profitability margins improved, with the gross profit margin rising to 85.7% from 80.7% and the EBITDA margin increasing to 62.4% from 58.6%. The net profit margin also saw an uptick, reaching 46% compared to 43.5% a year earlier.

The mass-market gaming segment, which includes public-floor tables and electronic gaming machines, contributed significantly to NagaCorp's revenue, generating $238.3 million, a 2.7% increase from $232.1 million in the first half of 2025. This segment accounted for 78.5% of the total gross gaming revenue, highlighting its importance to the company's financial health.

However, the decline in VIP revenue is notable. The company reported that premium VIP rolling volumes dropped by 50.2%, while gross gaming revenue from this segment fell by 21.4%. The decrease in VIP activity is linked to a 53.6% year-on-year reduction in leisure and business travelers from the Asia-Pacific region, which has been impacted by factors such as rising airfares, reduced flight connectivity, and negative perceptions related to online scams in Cambodia. Tourist arrivals at Techo International Airport also fell by 28.9% during the first half of 2026, according to tourism data referenced in NagaCorp's announcement.

NagaCorp's cash position remains robust, with $416.3 million in cash and bank balances as of June 30, up 11.8% from $372.3 million at the end of 2025. The company fully repaid a $70 million shareholder loan in May 2026 and reported no outstanding borrowings at the end of the reporting period. An interim dividend of 0.98 US cents per share was declared, maintaining a payout ratio of 30% despite the challenging operating environment.

As NagaCorp navigates these mixed results, it faces ongoing challenges in the tourism sector, which are crucial for its VIP gaming segment. The company aims to adapt to these market dynamics while continuing to leverage the growth potential in the mass-market segment, which has proven resilient amid broader economic uncertainties.