NagaCorp Reports Lower 1H26 Profit as VIP Visitation Falls

NagaCorp, which runs the NagaWorld integrated resort in Phnom Penh, announced that its net profits declined by 3.2% year on year to US$144 million in the first half of 2026. The company attributed the weaker result to concerns about Cambodia’s association with online scam activity, higher fuel prices, and fewer direct international flights to the country.

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Adjusted EBITDA fell 2.4% to US$195.4 million, while gross gaming revenue declined 8.6% to US$303.7 million for the 6 months ended June 30.

VIP Segment Bears Pressure

NagaCorp said the external challenges were felt exclusively in its VIP gaming segment. Premium VIP rollings fell 50.2% to US$1.69 billion, while premium VIP GGR declined 21.4% to US$53.9 million.

Referral VIP rollings dropped 67.6% to US$361.6 million. Referral VIP GGR fell 63.9% to US$11.5 million during the period.

The company said negative international perceptions connected to online scam activities had affected Cambodia’s reputation as a safe travel destination. The increase in prices of jet fuel led to higher fares and costs of traveling to the area, with tensions in geopolitics resulting in fewer direct flights to Cambodia.

Cross-Border Customers Affected

NagaCorp said the VIP market was particularly vulnerable because it depends mainly on cross-border business, premium leisure travellers, and high-net-worth customers. Demand from these groups is more exposed to economic fluctuations and disruptions affecting international travel.

The company’s comments linked the decline in VIP activity to a combination of reputational concerns, higher travel costs, and reduced flight availability.

The challenges also occurred as the company managed a moderation in business momentum during the 2Q. NagaCorp said this was believed to be mainly connected to the FIFA World Cup, which diverted customer attention and visitation away from gaming floors.

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Mass Market Records Growth

Unlike the VIP segment, NagaCorp’s mass-market operations recorded higher activity during the first half. Mass-market volumes across tables and slots increased 6.2% year-on-year.

Mass table GGR rose 2.8% to US$166.4 million, while electronic gaming machine GGR increased 2.6% to US$71.9 million. The gains provided some support as the company faced a significant decline in VIP gaming revenue.

The mass-market figures show that not all parts of NagaCorp’s business were affected in the same way during the period. Table and slot volumes increased even as premium and referral VIP activity declined sharply.

Interim Dividend Declared

NagaCorp declared an interim dividend of US$0.98 per share. The payment represents a payout ratio of 30% of net profit for the first half.

The dividend is lower than the US$1.01 per share declared for the first half of 2025. The announcement came alongside the company’s report of lower profit, EBITDA, and gross gaming revenue.

NagaCorp’s first-half results show a mixed performance across its gaming segments. VIP activity fell as Cambodia faced travel and reputation-related challenges, while mass-market operations continued to record year-on-year growth.

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Source: Inside Asian Gaming