GGRAsia – Donaco cuts Cambodia op costs amid ongoing shutdown

Donaco cuts Cambodia op costs amid ongoing shutdown

Oct 29, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck

Cambodia casino complex Star Vegas Resort and Club reduced its operating expenses by a third in the three months to September 30, compared to the prior-year quarter, its promoter Donaco International Ltd said in a Friday filing to the Australian Securities Exchange.

Such expenses were AUD670,000 (US$504,624) compared to AUD1.0 million in the same period a year ago.

Star Vegas casino (pictured in a file photo) in Poipet, on Cambodia’s border with Thailand, has been temporarily closed since April 27.

The group also runs the Aristo International Hotel including a casino, at Lao Cai on Vietnam’s border with China, and which has been operating “on a limited basis since May 2020,” according to Donaco.

The group said it had been experiencing a “cash burn” of approximately US$380,408 per month, which it said was “well within the targeted range”.

Net revenue at Star Vegas in the quarter to September 30 was negligible – at AUD50,000, versus AUD130,000 in the quarter a year earlier. There was zero rolling chip turnover in the latest period, versus AUD1.26 million a year earlier.

At Aristo International, quarterly net revenue was up sequentially and year-on-year. Such revenue was AUD710,000, versus AUD360,000 in the quarter to June 30, and AUD200,000 in the quarter to September 30, 2020.

Property-level earnings before interest, taxation, depreciation and amortisation (EBITDA) in the latest period was positive by AUD300,000, compared to negative by AUD70,000 in the quarter to June 30, and negative by AUD550,000 in the prior-year period.

There were 12 visitors per day to the Vietnam property, on average, compared to 15 per day in the three months to June 30, and 12 per day in the prior year quarter.

Group-wide net revenue was AUD760,000, versus AUD1.46 million in the quarter to end-June, and AUD330,000 in the quarter to September 30 last year, “stemming from operational inactivity due to Covid-19 restrictions,” said the firm.

The ongoing restrictions had “heavily reduced” visitor numbers, affecting revenue and EBITDA, said Donaco. But it added: “The governments of Thailand and Cambodia have both outlined significant reopening plans during the December 2021 quarter.”