Sep 01, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck  
Donaco International Ltd, an operator of border casinos in Southeast Asia, significantly narrowed its fiscal-year loss as of June 30, to just above AUD58.9 million (US$43.7 million), from AUD198.0 million a year earlier, even though the second half of the reporting period was affected by Covid-19.
The fiscal 2020 loss included an impairment charge of AUD50.5 million relating to an updated assessment on the potentially-recoverable amount of cash it could receive from its Cambodian property, Star Vegas Resort and Club (pictured).
No dividends were paid for the year ended 30 June, the company confirmed in its Tuesday filing to the Australian Securities Exchange.
Donaco runs the Aristo International Hotel, at Lao Cai, on Vietnam’s border with China, and Star Vegas Resort and Club, at Poipet, on Cambodia’s border with Thailand.
The firm warned in its results that the outlook for the next reporting period was clouded by ongoing travel restrictions in the region, relating to the pandemic.
“While there has been a tentative resumption of casino operations since the Vietnamese and Cambodian governments lifted temporary closure orders in May and July 2020 respectively, patronage numbers at these casinos are still expected to remain low as international borders with Vietnam and Cambodia remain closed and the majority of the visitors to these casinos are foreign patrons,” said Donaco.
The firm added, in commentary to its results, that the board acknowledged there was “significant uncertainty over Donaco’s ability to meet its working capital requirements and the loan covenants under the Mega Bank loan facility”.
The company further noted that the Taiwan lender, known also as Mega International Commercial Bank Co Ltd, had agreed to defer a US$5-million principal repayment – that was due in June under a loan facility agreement – to December 2020. Mega Bank had also granted a waiver on all June 2020 covenants under the loan facility agreement, until December 31 this year.
For the fiscal year to June 30, Donaco’s group revenues fell 38.0 percent, to just under AUD53.5 million, from AUD86.3 million in fiscal-year 2019.
Total revenues from Vietnam casino operations were down 36.6 percent, at AUD13.7 million, from nearly AUD21.6 million a year earlier.
Revenues from Cambodia casino operations were AUD39.7 million, from nearly AUD64.7 million, a year-on-year decline of 38.6 percent.
Group-wide earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at AUD10.3 million, down 65.2 percent from the previous year.
Costs – including gaming expenses – for the fiscal year to June 30, fell 60.8 percent year-on-year, to AUD109.9 million, from AUD280.4 million.
Trade and other receivables – commonly associated in the casino sector with credit advanced to players – declined by 53.9 percent in fiscal-year 2020, to just under AUD1.3 million, from nearly AUD2.8 million.
The firm said in a separate filing, also issued on Tuesday, that it was maintaining a “monthly cash burn rate” of approximately US$800,000 to US$900,000 while its operations were at “limited operating capacity”.
In late July, Donaco said it had successfully completed a share entitlement exercise, and was raising about AUD14.4 million from it, before costs.
Oct 25, 2024
Oct 22, 2024
Nov 05, 2024
Nov 05, 2024
Nov 05, 2024
Macau casino operator Wynn Macau Ltd expects to complete the full rollout of so-called ‘smart tables’ at its two Macau properties by next Chinese New Year, which falls on January 29, 2025. The...(Click here for more)
4.88 million
Aggregate number of international visitor arrivals to the Philippines in the first 10 months of 2024