NagaCorp Ltd. (03918.HK), which operates Cambodia’s largest gaming resort, is eyeing South Korea as part of efforts to expand into North Asia markets, chief financial officer Lee Wai-tuck told the Hong Kong Economic Journal.
South Korea can be a stepping board to bring in customers from Japan and northeastern China, the executive said.
NagaCorp had earlier scaled down a planned US$350 million investment in a casino project in Vladivostok, Russia to US$50 million due to worsening ties between Moscow and the West. The project is expected to be completed in two years and commence operation by 2017.
South Korea will now be a new focus area for the company’s growth plans, Lee said.
NagaCorp, however, does not have any interest in entering the Vietnam market, given the country’s restrictions on gaming by local people and on location of the facilities, he said.
In other comments, Lee said NagaCorp will soon unveil a plan to collaborate with betting brokerages in Macau. The company began some profit-sharing initiatives last year to boost casino revenues. The initiatives yielded positive results in first half this year.
Macau gaming industry prospects have been clouded in the recent past by uncertainties surrounding the Chinese economy and Beijing’s anti-graft campaign. Amid this situation, NagaCorp’s Cambodia report posted robust growth in both its VIP and mass-market businesses in the six months to June, said Lee.
The company mainly draws its revenue from Singaporeans and Malaysians. Only 10 percent of its overall customers are said to come from mainland China.
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