HK Stock Market Move | NAGACORP (03918) drops over 4%, with its stock price having fallen more than 20% cumulatively this month; total gaming revenue in the third quarter fell 43% year-on-year.

NAGACORP (03918) dropped over 4%, with its stock price having fallen 24% cumulatively this month. As of press time, it fell 4.55% to HK$2.41, with a turnover of HK$16.6502 million. On the news front, NAGACORP announced earlier this month its operating summary for the nine months ended September 30, with total gaming revenue of US$418 million, down 21.5% year-on-year; net gaming revenue of US$389 million, down 16.7% year-on-year. Looking at the third quarter alone, total gaming revenue fell 43% year-on-year to US$114.2 million. Citi believes that peripheral factors such as security concerns over the Thailand-Cambodia border conflict and telecommunications fraud, as well as a reduction in direct flights to Cambodia, continue to suppress gaming demand at NagaWorld. A BofA Securities research report believes that the visibility of a recovery in the company's gaming revenue is limited, with gaming revenue growth having slowed from 2.1% in the first quarter to a 20% decline in the second quarter and a 43% decline in the third quarter. Based on the disappointing gaming revenue, the bank lowered its EBITDA forecasts for fiscal years 2026 and 2027 by 27% and 38% respectively, to US$312 million and US$269 million.