• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Casino closures cost Donaco up to US$900k a month: filing

Apr 07, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck  


Casino closures cost Donaco up to US$900k a month: filing

Australia-listed casino operator Donaco International Ltd says it expects a “cash burn run rate”of between US$800,000 and US$900,000 per month during the temporary closure of its two casinos. Such expenses cover costs associated with “maintaining the casino assets” and other “associated corporate costs,” said the company in a Tuesday filing.

Donaco’s flagship venue, the Star Vegas Resort and Club, is near Cambodia’s border with Thailand. Its Aristo International Hotel and associated casino (pictured) are near Vietnam’s border with China. Both properties have been temporarily suspended due to the negative impact of the Covid-19 pandemic.

“The temporary action follows the Cambodian government’s announcement mandating the closure of all casinos from 1 April 2020, alongside the Vietnam government’s measures to temporarily close all casinos for a period of 15 days from 1 April 2020,” stated Donaco in its latest filing.

The company said it was introducing a range of measures to cut costs during the closure period in order “to ensure the company’s sustainability into the future”.

“As a result, Donaco has had to take difficult, but unavoidable, measures in relation to its staff, including reductions in headcount, placing employees on leave, standing down casual staff and deferring non-essential expenditure,” the firm told the Australian Securities Exchange.

The company said also that it was working to reduce operating and capital expenditure. As ofMarch 31, 2020, Donaco had a cash balance of US$11.6 million, according to Tuesday’s filing.

The document quoted Donaco’s chairman Mel Ashton as saying: “The situation we are facing with the Covid-19 pandemic is unprecedented and we’ve unfortunately had to take some drastic measures with our staff, including redundancies and pay cuts.”

Mr Ashton added: “This is to ultimately ensure the business remains afloat and to be in a healthy financial position once we eventually rebuild the team and restart operations.”

The filing also confirmed that Donaco was still in discussions with the group’s principal lender – Mega International Commercial Bank Co Ltd – regarding the settlement of litigation with the vendors of the Star Vegas business. The company was also trying to amend the June 30, 2020 covenants in respect to its term-loan facility, it added.

“Donaco continues to consider liquidity measures and sources of a capital injection to guarantee the business remains in a sustainable and dynamic position during this period of global uncertainty,” noted the filing.

It added: “The duration of the Covid-19 crisis and the period of closure of the casinos will obviously affect the requirement for a capital injection but … the board is confident of both the ability to maintain the business during an extended period of closures and source capital as required to strengthen the balance sheet.”


  • tweet
Related articles
  • Foreigner-only Vietnam casinos seek local trade: report
    Foreigner-only Vietnam casinos seek...

    Mar 02, 2021  

  • NagaWorld ops paused after 11 staff positive for Covid-19
    NagaWorld ops paused after 11 staff...

    Mar 02, 2021  

More news
  • Nevada sell-off by LVS may aid dividend return: Bernstein
    Nevada sell-off by LVS may aid dividend...

    Mar 04, 2021  

  • Paradise Co posts sharp Feb casino revenue decline
    Paradise Co posts sharp Feb casino...

    Mar 04, 2021  


Latest News

Nevada sell-off by LVS may aid dividend return: Bernstein

Nevada sell-off by LVS may aid dividend return: Bernstein

Mar 04, 2021  

The planned sale of the Nevada gaming assets of United States-based casino group Las Vegas Sands Corp announced on Wednesday, could “accelerate the timing of dividend resumption” for the firm, or...
Read More
Paradise Co posts sharp Feb casino revenue decline

Paradise Co posts sharp Feb casino revenue decline

Mar 04, 2021  

Las Vegas Sands to sell off Nevada assets for US$6.25bln

Las Vegas Sands to sell off Nevada assets for US$6.25bln

Mar 03, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12-18 months”

Max Chiara

Chief financial officer at gaming product and lottery services provider International Game Technology



Most Popular

  • Lim Kok Thay, GEN Singapore execs in US$1.3mln stock awardLim Kok Thay, GEN Singapore execs in US$1.3mln stock award March 2, 2021
  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Macau casino GGR down 9pct m-o-m in February: govtMacau casino GGR down 9pct m-o-m in February: govt March 1, 2021
  • Las Vegas Sands to sell off Nevada assets for US$6.25blnLas Vegas Sands to sell off Nevada assets for US$6.25bln March 3, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us