NagaCorp GGR Falls 21.5% as VIP Revenue Deteriorates

Kyle Kevin

iGaming Writer

Fact Checked

NagaCorp’s nine-month GGR fell 21.5% to $417.9 million, with premium VIP revenue down 40.1% and mass table revenue reversing its first-half gains.

NagaCorp’s nine-month GGR fell 21.5% year-on-year to $417.9 million, more than doubling the 8.6% decline recorded in the first half. Net gaming revenue dropped 16.7% to $388.7 million in the same period. The October 2nd filing widens the trend across both premium and mass markets, and it confirms that the moderation described in the second-quarter interim results has carried into the fourth month of the year.

NagaCorp GGR Declines for the Year

The first-half decline of 8.6% gave way to a 21.5% decline through September. That acceleration matters because it means the second half did not simply inherit the first-half problem; it widened the gap. Nine-month GGR reached $417.9 million, while net gaming revenue fell 16.7% to $388.7 million. The two figures diverge because of the netting of operating costs, but the direction of travel is the same.

In contrast, the H1 result of 8.6% understated the severity of the trend. NagaCorp’s 9M GGR of $417.9 million is the cumulative figure investors should use when comparing against the prior year, and it is down more than twice that earlier rate. The group’s interim results released in August had already flagged a moderation in Arden Consult business momentum, but the nine-month figures show the moderation has not been contained.

VIP Revenue Collapses Sharply

The VIP decline is the main driver of the group’s nine-month GGR shortfall. Premium VIP GGR fell 40.1% to $65.8 million, compared with a 21.4% decline in H1, while referral VIP revenue fell 72.5% to $15.9 million versus a 63.9% decline in the first half. Both segments deteriorated further in the second half, widening the gap between them and the prior year.

Rolling volume underpins the revenue loss. Premium VIP rolling volume dropped 55.4% to $2.09 billion, and referral VIP rollings declined 75.6% to $500.3 million. The referral VIP contraction is the sharper of the two, so the group’s cross-border referral book is taking more damage than its premium segment. As a result, NagaCorp’s VIP revenue weakness is concentrated in the referral side, where activity has fallen by three-quarters.

The company has linked the VIP downturn to travel disruptions and economic pressure. Weak regional travel, higher airfares, fewer direct international flights and negative perceptions around online scam activities in Cambodia have all weighed on the segment. NagaCorp’s VIP business relies heavily on cross-border players, premium leisure travelers and high-net-worth customers, so any disruption in those markets lands immediately on revenue.

Mass Market Growth Reverses

Mass-market revenue, which had helped cushion the VIP decline, turned lower. Public-floor table GGR dropped 10% year-on-year to $232.7 million, after posting 2.8% growth during the first half. Table buy-ins fell 12.9% to $981.7 million, following a 0.4% increase in the first six months. The reversal is visible in volume, not just revenue, as buy-in contraction points to a broader softening across the mass floor.

In contrast, electronic gaming machine revenue decreased only 2.5% to $103.4 million, reversing first-half growth of 2.6%. Bills-in continued to expand, rising 9.7% to $2.37 billion. The machine segment is the one holding its ground, with bills-in still growing even as revenue slipped slightly. However, the public-floor table reversal remains the clearest sign that the mass market no longer provides the same support it did in H1.

What the Company Says Is Driving It

NagaCorp attributed the first-half VIP downturn to weaker regional travel, higher airfares, fewer direct international flights and negative international perceptions associated with online scam activities in Cambodia. The company also described a moderation in business momentum during the second quarter, and the nine-month figures suggest that moderation has continued rather than eased. Mass-market table revenue, which had still increased 2.7% in H1, turned lower in the same period.

The travel exposure is structural. NagaCorp’s VIP business is particularly dependent on cross-border business, premium leisure travelers and high-net-worth customers, and all three groups are sensitive to disruption. The 21.5% GGR decline for the nine months is therefore the sum of a VIP collapse and a mass-market reversal, with travel disruption at the center of both. The question for investors is whether the second-half figures will stabilize or whether the VIP weakness deepens further.

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This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.