Aug 30, 2016 Newsdesk Latest News, Rest of Asia, Top of the deck
Asian casino operator Donaco International Ltd reported net profit attributable to shareholders of AUD77.2 million (US$58.2 million) in the 12 months to June 30. In the prior year, the firm recorded a AUD2.9-million net loss.
For the latest financial year, Donaco announced to the Australian Securities Exchange that it was issuing its first-ever dividend – amounting to AUD0.01 per share – payable on October 19.
Donaco operates two casino properties, the Aristo International Hotel in Vietnam and Star Vegas Resort and Club (pictured) in Cambodia – border properties targeting gamblers from respectively, China and Thailand.
Joey Lim Keong Yew, Donaco’s managing director, said in a statement accompanying the annual results: “We are pleased to have delivered a strong operational result from both of our gaming assets, with a major part of our earnings this year coming from Star Vegas, which contributed AUD120 million in revenue and AUD87 million in underlying EBITDA [earnings before interest, taxation, depreciation and amortisation].”
Donaco concluded in July 2015 the acquisition of Star Vegas – located in Poipet, Cambodia – for a consideration of US$360 million.
Financial year 2016 was the first full reporting year to include revenue from Star Vegas, noted the firm in an investor presentation filed on Tuesday. The casino firm reported group revenue of AUD143.4 million for the latest financial year.
Net gaming revenue at Star Vegas during the 12 months to June 30, 2016 was up 15.8 percent year-on-year, to approximately THB3.01 billion (US$87.3 million).
Net gaming revenue at Aristo International was up 16.2 percent at RMB58.7 million (US$8.8 million).
“Our business is also producing strong cash flow, generating AUD48.7 million of cash flow from operations and demonstrating our ability to convert EBITDA into cash flow. Our excellent financial performance has enabled us to announce our intention to pay a maiden dividend of 1 Australian cent per share, whilst maintaining our strong capital position and healthy balance sheet,” said Mr Lim.
The results release noted that Star Vegas planned to expand its gaming operations to a neighbouring property, which the firm referred to as “Star Paradise”. It said Donaco would receive a THB5-million monthly fee for managing a gaming area at Star Paradise under the Star Vegas gaming licence. Donaco will also be reimbursed by the owners of Star Paradise for the costs of running a gaming venue there.
“The existing Star Paradise property has been upgraded with a new gaming hall constructed and financed by Donaco’s Thai partner. Accordingly, there is no capital expenditure required by Donaco. Donaco is also finalising an exclusive option to acquire the entire Star Paradise business,” added the statement accompanying the annual results.
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