NagaCorp doubles down with $3.5bn casino plan in Cambodia

Share price down around 10% since announcement as analysts voice cost concerns.

Phnom Penh – NagaCorp is planning its third casino project in Phnom Penh to tap the growing numbers of free-spending Chinese tourists to the country. But with a price tag equal to almost a sixth of Cambodia’s GDP, analysts are questioning the viability of the project.

In a filing with the Hong Kong stock exchange on Sunday, NagaCorp said it will spend $3.5 billion to build a hotel and casino resort that will boast over half a million square meters of floor space when finished in 2025. The figure excludes land costs.

The company, which has a monopoly casino license in Phnom Penh that runs until 2035, is in the midst of an earnings hot streak, having posted a record profit last year on strong gaming revenue at its Naga 1 and Naga 2 casino complexes, which opened in 2003 and 2017, respectively.

In full: https://asia.nikkei.com/Business/Companies/NagaCorp-doubles-down-with-3.5bn-casino-plan-in-Cambodia

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