Border-casino operator Donaco International Ltd reported quarterly earnings before interest, taxation, depreciation and amortisation (EBITDA) of AUD1.78 million (US$1.25 million) for the fourth quarter of 2022.
That was up from the AUD1.50-million EBITDA in the preceding quarter, the first time the group had achieved positive quarterly EBITDA since early 2021. The fourth-quarter 2022 result compared to negative group EBITDA of AUD1.24 million in the prior-year quarter, according to a Tuesday filing to the Australian Securities Exchange.
Donaco runs a casino called DNA Star Vegas on Cambodia’s frontier with Thailand, and another named Aristo International Hotel, on Vietnam’s border with China.
The company reported net revenue of AUD5.30 million for the three months to December 31, up from AUD4.53 million in the third quarter of 2022.
“Our December quarter was encouraging with steady contribution from DNA Star Vegas following the increase in international travel from neighbouring countries,” said non-executive chairman Porntat Amatavivadhana, as cited in the results filing. “Promisingly, it seems we are coming out from the effects of the Covid-19 pandemic with international travel set to continuously improve.”
He added: “Momentum is expected to grow as mainland China recently reopened its borders, and this presents a substantial growth potential for us as historically a large portion of our clientele came from China.”
The executive said additionally that the group’s two casinos had a “robust balance sheet position,” and a “solid operational strategy”.
Property-level EBITDA at the Cambodia venue was AUD2.69 million in the reporting quarter, compared to AUD2.22 million in the preceding quarter.
During the December quarter, Donaco said it “ramped up” operations at DNA Star Vegas. The casino resort resumed operations in June 2022 after more than one year of closure due to Covid-19 restrictions. Business at DNA Star Vegas is “now at full operational capacity,” it said.
At Aristo, the group recorded negative property-level EBITDA of AUD0.27 million for the fourth quarter, compared to negative EBITDA of AUD0.09 million in the September quarter.
The casino hotel in Vietnam “has operated on a limited basis” since May 2020, “due to the fact that travel between Vietnam and China … remained heavily restricted … as a result of residual Covid-19 measures,” stated Donaco. “Encouragingly, the situation is due to improve as mainland China announced the full reopening of its borders and travel flow from January 2023,” it added.
Donaco said it was “targeting further earnings growth in the near and longer term as a result of increased travel flow, and borders reopening in a number of countries”.
