GGRAsia – Border casino op Donaco back to positive quarterly EBITDA

Border casino op Donaco back to positive quarterly EBITDA

Oct 31, 2022 Newsdesk Latest News, Rest of Asia, Top of the deck

Border-casino operator Donaco International Ltd achieved positive quarterly earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first time since early 2021, said its chairman in a Friday filing to the Australian Securities Exchange.

Group EBITDA for the firm – which runs a casino on Cambodia’s frontier with Thailand, and another on Vietnam’s border with China – was AUD1.50 million (US$962,313) for the three months to September 30, compared to negative group EBITDA of AUD1.04 million in the prior-year quarter.

“I am delighted to see Donaco achieve positive EBITDA for the first time in a quarter since early 2021 and importantly there is substantial further growth potential on the horizon,” said non-executive chairman Porntat Amatavivadhana, as cited in the results filing.

He added the group was pleased to see the Cambodia property at Poipet, DNA Star Vegas, had “delivered a strong result so soon after reopening, which is a testament to the operational strategy Donaco has implemented and one which we anticipate will be sustainable.”

DNA Star Vegas closed in April 2021 as a Covid-19 countermeasure, and only reopened in mid-June this year, according to company announcements.

Referring the Vietnam property at Lao Cai, Aristo International Hotel, the chairman said in Friday’s update: “We are confident of being able to replicate this strategy at Aristo in the future, which currently remains open on a limited basis.”

The group’s quarterly net revenue went up nearly 500 percent in the three months to September 30. Such quarterly net revenue was AUD4.53 million, with AUD4.10 million of that, coming from DNA Star Vegas. In the prior-year quarter, group net revenue had been only AUD0.76 million.

Property-level EBITDA at the Cambodia venue was AUD2.22 million in the reporting quarter, compared to a negative figure of AUD0.62 million in the prior-year period.

“The operation is anticipated to gradually reach full capacity over the coming quarters,” said Friday’s filing.

VIP rolling chip turnover at DNA Star Vegas in the latest reporting quarter was AUD181.29 million, with no figure recorded for the prior-year quarter, during temporary closure.

The group’s cash holding was AUD10.9 million as of September 30.