Management at border-casino operator Donaco International Ltd says the group is “not considering” selling its Aristo International Hotel operation (pictured) in Vietnam, although it confirmed business there had been hurt by Vietnam’s border with China remaining closed due to the Covid-19 pandemic.
The commentary involving Lee Bug Huy, chief executive, and Gordon Lo, chief financial officer, came in a recent earnings call with analysts to discuss the firm’s results for the six months to December 31, its financial first half.
Fiscal first-half revenue from Aristo, located at Lao Cai, Vietnam, was AUD600,000 (US$462,495) compared to AUD10.3 million in the prior-year period, the firm had said in its earnings presentation on February 26.
“We have made considerable progress in the last half year,” regarding Aristo, stated the management, in response to the potential for a sell-off of the Vietnam operation.
“For us Aristo is a casino with a lot of potential and we are confident that once borders reopen the situation will stabilise,” management further noted in a transcript of the earnings call, that was filed with the Australian Securities Exchange on Friday.
“We are not considering selling Aristo at this stage, and we would only consider a sale of the casino if it provided superior value for Donaco shareholders,” noted the management.
Donaco’s main asset is Star Vegas Resort and Club, in Poipet, Cambodia. The executives also confirmed that the border with Thailand – from where Star Vegas traditionally draws many gambling customers – was currently closed as a result of the pandemic
But the management added it had renewed efforts to attract “clientele from the local region to Star Vegas, to in turn reduce our international staff expenses, alongside continued disciplined capital management and a reduction in our costs”.
The executive team was asked on the earnings call if the group was considering raising fresh capital currently.
It stated: “We do not plan to raise funds any time soon.” But added the group was “not ruling out” such a move.
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