“We recently met with NagaCorp management. The company operates a casino in Cambodia called NagaWorld and is the only casino operator in the capital Phnom Penh. Naga Corp can operate any number of casinos of any size within 200km of
Phnom Penh. It can also operate any type of table game, or increase the number of slot machines without further approval from the local government.
Growth had been highly promising since 2003 (earliest available data). Between 2003-07, NagaCorp’s revenue grew by a compound average annual rate of 27%, earnings by 33% p.a., and its number of “high-rolling” STG players by 19% p.a.
NagaCorp intends to triple its number of gaming tables to 300 by 2009.”

“However, earnings visibility is currently low due to a highly competitive and dynamic industry that is fast becoming borderless, the apparent lack of competitive edge aside from higher commissions offered to junket operators, the short earnings
track record of this business, the relatively high country-related risks, the susceptibility of its patronage growth to Asia’s and Cambodia’s economic growth, and the unpredictability of win rate coupled with a higher reliance on gaming revenues compared with other regional players.”