Hong Kong-listed NagaCorp Ltd has reported net profit of $309.9 million for full-year 2025, nearly tripling the $109.6 million recorded in 2024. The Cambodian casino operator, which holds a long-term monopoly on gaming operations in Phnom Penh through its flagship NagaWorld resort, delivered the result despite abandoning a share subscription arrangement intended to fund its Naga 3 expansion project late last year.

Group revenue climbed 26.2% to $709.7 million. EBITDA surged to $404.4 million from $202.8 million, pushing the margin to 57.0%. Net profit margin settled at 43.7%, a real improvement on the previous year’s performance, which had been weighed down by an $89.1 million non-cash impairment related to the company’s stalled Vladivostok resort project in Russia.

Mass Market Strategy Delivers Margin Gains

Management attributed much of the growth to higher volumes across all gaming segments, combined with a strategic pivot toward mass-market players and the introduction of higher-margin side bet games. Those side bets alone generated approximately $39 million in incremental revenue during the year. That figure underscores the effectiveness of product innovation in driving profitability without chasing high-roller volatility.

Mass-market table revenue rose 27.2% to $342.4 million, supported by a 12.6% increase in business volumes and a win rate of 22.9%. Electronic gaming machines contributed $142.6 million, up 13.5% year-on-year. Premium mass high-limit zones proved particularly successful, attracting higher-value patrons and increasing their share of total mass table gross gaming revenue to 38.5%, up from 33.9% in 2024.

VIP Segments Stage Sharp Recovery

The most striking turnaround came in the premium VIP categories. House-managed premium VIP revenue jumped 32.1% to $136.2 million on rolling volume of $5.50 billion, which itself grew 51.6%. Referral VIP revenue climbed 57.2% to $70.4 million, with volumes reaching $2.32 billion, a 17.2% increase.

NagaCorp credited the rebound to an influx of regional business owners, characterised by deeper pockets, longer stays, and repeat visitation patterns. This cohort has reshaped the customer mix. Revenue now tilts toward higher-yielding segments, validating the company’s decision to court premium players more aggressively.

Dividend Declared Despite Funding Pivot

The company declared an interim dividend of $0.0109 per share, totalling $48.3 million and representing a 30% payout ratio based on second-half net profit. The distribution, payable on 7 August, signals management’s commitment to returning capital to shareholders even as it navigates alternative funding structures for the Naga 3 project.

In December, NagaCorp withdrew a share subscription arrangement that had been earmarked to finance the expansion. The company has since indicated it will proceed with Naga 3, albeit with possible adjustments to cost and scope. Frankly, the dividend payment serves as a reassurance that capital allocation priorities remain balanced between growth investment and shareholder returns.

Outlook

With EBITDA margins at 57.0% and net profit margins approaching 44%, NagaCorp’s operational performance suggests a business model that is both efficient and scalable. The combination of mass-market volume growth, product innovation through side bets, and a resurgent premium VIP segment positions the company well for 2026, even as it refines its expansion strategy in the absence of external equity funding.

The monopoly licence in Phnom Penh remains the structural advantage underpinning the business. Management’s ability to extract margin improvement while growing top-line revenue shows disciplined execution. How the Naga 3 project evolves, and whether cost optimisation can preserve its strategic value, will be the next test of that discipline.