Border-casino operator Donaco International Ltd saw its group quarterly earnings before interest, taxation, depreciation and amortisation (EBITDA) recover to 77.5 percent of the same quarter in 2019, a period prior to the Covid-19 pandemic.
Such group EBITDA for the three months to March 31 this year, was AUD8.39 million (US$5.46 million), it said in a Wednesday filing to the Australian Securities Exchange. That compared to AUD10.82 million for the equivalent quarter in 2019.
Group EBITDA was up 65.8 percent from the AUD5.06 million reached in the previous quarter, and up 106.1 percent year-on-year from AUD4.07 million reached in the same quarter of 2023.
“Donaco’s operational execution and increase in quality player visitation fuelled strong growth in our business in the March quarter,” stated Donaco’s non-executive chairman, Mr Porntat Amatavivadhana, as cited in the update.
Donaco runs the DNA Star Vegas resort (pictured in a file photo) at Poipet, on Cambodia’s border with Thailand, and the Aristo International Hotel at Lao Cai, near Vietnam’s border with China.
The March-ending quarter – the group’s fiscal third-quarter – saw net revenue reach AUD12.66 million, up 30.1 percent sequentially from the fiscal second quarter’s AUD9.73 million, and also up 67.7 percent from the AUD7.55 million reached a year ago.
Nearly 70 percent of Donaco’s latest quarterly net revenue was generated from its DNA Star Vegas property, according to the filing.
In the third quarter, DNA Star Vegas’ net revenue was AUD8.82 million, up 44.1 percent sequentially and 40.2 percent year-on-year. Property level EBITDA of this property in the third quarter was AUD6.63 million, up 83.7 percent sequentially and nearly 59 percent year-on-year.
“Star Vegas continued to outperform, delivering considerable growth across property-level EBITDA and net revenue. The operation also saw improvement in daily visitation and a reduction in operating expenses, which is a testament to our turnaround strategy,” said Donaco’s non-executive chairman.
The group said a membership loyalty programme implemented in DNA Star Vegas in January has helped its third-quarter performance.
Donaco’s Vietnam operation, Aristo International Hotel, saw its net revenue reach AUD3.84 million in the third quarter, up 6.4 percent sequentially and 204.8 percent from a year ago. Aristo’s property level EBITDA in the third quarter was AUD2.53 million, up circa 13 percent sequentially and 336 percent year-on-year.
The uptick in the net revenue figures and EBITDA for Donaco’s Vietnam operation was attributed to “stabilised tourism… primarily from China”.
As at the end of March, Donaco had a cash position of AUD28.99 million, a 15.4-percent rise from the AUD25.12 million at the previous quarter’s end, the filing stated.
