NagaCorp reports 65.4% revenue drop in Covid-hit H1

As a result, NagaCorp was able to report just two months of operations within the six-month period, with its operations suspended from 2 March.

The revenue total was a drop of 65.4% compared to its first half-year results in 2020, which were themselves affected by the closure of the NagaWold Resort from April to July to adhere to public health guidance.

NagaCorp’s VIP Market made up most of the revenue, but also experienced the most significant year-on-year drop. It recorded $80.5m in revenue, a 70.2% decline compared to the $270.8m recorded in H1 2020.

On the decline, Nagacorp chairman Timothy Patrick McNally commented that the business expects an improvement after certain Covid-19 measures are lifted.

“We anticipate that as travel restrictions are lifted across the Asia Pacific region, our VIP business will continue to improve, particularly with junket operators,” said McNally.

Public floor tables accounted for $29.8m of the revenue, a yearly drop of 56.3%, while electronic gaming machine revenue declined by 42.0% to $18.9m.

Profit for the period came to $24.3m, while other revenue accumulated $7m. However, depreciation and amortisation costs at $55.0m and finance costs at $21.7m brought the profit into the negative. Accounting for unallocated head office and corporate expenses at $13.1m, the overall profit came to a loss of $65.6m for the period, a 291.6% downturn compared to H1 2020.

In terms of sales, the cost totalled at $55.7m, significantly less than the $203.6m recorded year-on-year.

Although other income added $3.4m to the total, administrative expenses at $27.1m and other operating expenses at $94.8m brought the operating loss for the period to $43.8m. This was a decline of $83.1m compared to H1 2020.

Financial costs at $21.7m affected the total further, bringing the loss before tax to $64.6m. After considering income tax of $11.6m, the total net loss amounted to $77.2m, meaning its H1 losses widened by $97.8m.

“Looking ahead, 2021 will remain challenging largely resulting from economic uncertainties arising from the unprecedented COVID-19 pandemic,” said McNally.

“Nonetheless, with the relaxation of restrictions and the global economy slowly returning to normalcy, the group expects to continue its growth trajectory, and believes that the long term prospects and outlook of the group will remain stable.”