• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Donaco flags layoffs as coronavirus hits Vietnam biz

Feb 12, 2020 Newsdesk Coronavirus Crisis, Latest News, Rest of Asia, Top of the deck  


Donaco flags layoffs as coronavirus hits Vietnam biz

Donaco International Ltd, an Australia-listed boutique operator of casinos in Indochina, has announced lay-offs and unpaid leave for staff in February at its Aristo International Hotel (pictured) and associated casino near Vietnam’s border with China, due to the negative impact of a novel coronavirus.

The company said in a Wednesday update filed with the Australian Securities Exchange it would also be “deferring various capital expenditure projects” related to that property.

Brokerage Union Gaming Securities LLC suggested in a Tuesday note that the regional casino sector in Asia Pacific had an “elevated profile risk” until such time as there is “greater clarity” on the global outbreak of the virus, first reported in Hubei province in mainland China.

Donaco said in its latest update: “The virus has … had a specific impact on Donaco’s business operation at the Aristo International Hotel in Lao Cai, Vietnam, which borders Yunnan province” in mainland China.

It added: “In response to the slowdown in the business, Aristo management has arranged unpaid leave for many staff members in February, and has also reduced total headcount, as well as deferring various capital expenditure projects.”

According to Donaco, the border checkpoint at Lao Cai “is currently tightly restricted, with crossing allowed only for visitors with an ‘urgent’ or ‘official’ business reason”. The company noted that such restrictions had led to a “substantial reduction in players visiting the Aristo casino hall, and consequent reduction in gaming turnover.”

Rolling chip turnover at Aristo’s gaming venue in the first 11 days of February declined by nearly 82 percent from the first 11 days of January, to CNY58 million (US$8.3 million), said Donaco. The firm added that a total of 1,374 players visited the property’s casino in the first 11 days this month, down 75 percent from the same period in January.

Donaco said in Wednesday’s filing that currently there was “no time frame” on how long the “partial closure” of the border crossing might last. It would “likely to depend on the success of the broader efforts being undertaken within China and around the world to contain the virus,” the firm noted.

Donaco’s flagship casino hotel venue, the Star Vegas Resort and Club, is near Cambodia’s border with Thailand, a country where casino gambling is illegal. In its latest filing, Donaco said there had been “no direct impact noticed as yet from the coronavirus” on its Cambodia business. “The border crossing from Thailand into Poipet remains open as usual,” it stated.

The firm added: “In the longer term, if efforts to contain the virus are unsuccessful, there is likely to be an impact on the Thai economy generally, which has a strong tourism element. This may lead to an overall reduction in demand from Thai visitors to the Poipet casino.”

Hong Kong-listed NagaCorp Ltd, which has a monopoly casino licence for the Cambodian capital Phnom Penh, said in a Monday announcement that the “the company is of the opinion” that the coronavirus problem “will be short-lived”.

Donaco said earlier this week that two representatives of an institutional investor – people who in August had first been made non-executive directors – have now been made executive directors of the gaming group, to work on “legal, operational and financial matters” for the company, including “corporate activity and strategic projects, as well as investor relations matters”.


  • tweet
Related articles
  • Donaco not mulling sale of Vietnam casino hotel: execs
    Donaco not mulling sale of Vietnam...

    Mar 08, 2021  

  • A fresh US$2-bln casino project proposed for Vietnam
    A fresh US$2-bln casino project...

    Mar 04, 2021  

More news
  • UA Galaxy Cinemas normal as HK ops cease: Galaxy Ent
    UA Galaxy Cinemas normal as HK ops...

    Mar 08, 2021  

  • Galaxy’s Lui hopes Macau 2H better amid vaccine rollout
    Galaxy’s Lui hopes Macau 2H better...

    Mar 08, 2021  


Latest News

UA Galaxy Cinemas normal as HK ops cease: Galaxy Ent

UA Galaxy Cinemas normal as HK ops cease: Galaxy Ent

Mar 08, 2021  

UA Galaxy Cinemas, the multiple-screen cinema facility at the Galaxy Macau casino resort, is operating as usual, the resort promoter Galaxy Entertainment Group Ltd has confirmed to GGRAsia. In...
Read More
Galaxy’s Lui hopes Macau 2H better amid vaccine rollout

Galaxy’s Lui hopes Macau 2H better amid vaccine rollout

Mar 08, 2021  

Pace of Macau GDP decline slows in 4Q amid tourism gains

Pace of Macau GDP decline slows in 4Q amid tourism gains

Mar 08, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“Construction work is progressing smoothly and even though the Covid-19 outbreak has impacted our original timeline, we remain committed to this groundbreaking project"

Grant Johnson

Property general manager of City of Dreams Mediterranean



Most Popular

  • Lim Kok Thay, GEN Singapore execs in US$1.3mln stock awardLim Kok Thay, GEN Singapore execs in US$1.3mln stock award March 2, 2021
  • Las Vegas Sands to sell off Nevada assets for US$6.25blnLas Vegas Sands to sell off Nevada assets for US$6.25bln March 3, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Pansy Ho again cuts stake in MGM Resorts, for US$57mlnPansy Ho again cuts stake in MGM Resorts, for US$57mln March 4, 2021
  • LVS plans to keep U.S. base, stock listing: spokesmanLVS plans to keep U.S. base, stock listing: spokesman March 4, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us