GGRAsia – Donaco positive EBITDA for fiscal year 2023, loss widens

Donaco positive EBITDA for fiscal year 2023, loss widens

Aug 31, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck, World

Border casino operator Donaco International Ltd reported net revenue of AUD24.3 million (US$15.7 million) in the financial year to June 30, compared to AUD2.4 million in the previous year.

The Australia-listed firm posted positive earnings before interest, taxation, depreciation, and amortisation (EBITDA) of AUD9.6 million, versus a AUD4.4-million EBITDA loss in the prior year.

Donaco runs a casino called DNA Star Vegas on Cambodia’s frontier with Thailand, and another named Aristo International Hotel (pictured in a file photo), on Vietnam’s border with China.

Despite the improvement in business volumes during the reporting period, Donaco posted a net loss of just above AUD36.7 million for the 12 months to June 30, up 122.8 percent from a year earlier, according to a Thursday filing.

The company said an impairment charge of AUD26.7 million had been recognised in the latest financial year. That included a non-cash asset impairment charge of AUD22.2 million for the Aristo property, and a AUD4.5 million impairment for Star Vegas.

The company said the latest financial year represented “a turnaround period”, with “substantial improvements” in the second half of the year at Star Vegas and Aristo. “The two operations gradually resumed to steady capacity following limited prior activity due to the pandemic,” the firm stated.

Operations at Star Vegas in Cambodia “recommenced on a limited scale, and progressively advanced towards full capabilities,” said the casino operator. Star Vegas recorded net revenue of AUD19.9 million in the financial year to June 30 this year, versus AUD0.9 million a year earlier.

Revenue at the Aristo property stood at AUD4.4 million, up from AUD1.5 million in the prior year.

“The situation started to improve from January 2023 when mainland China announced the full reopening of its borders and travel flow, leading to Aristo methodically reopening,” said the company.

In Thursday’s filing, Donaco said the Aristo property was “nearing a return to full operations”. The company also said it was targeting “further earnings growth”, based on the “projected increase in travel activity” in the regions where it operates.

Donaco’s non-executive chairman, Porntat Amatavivadhana, was cited as saying in prepared remarks: “Financial year 2023 was a turnaround year for Donaco as we came out from the effects of the pandemic … Now that both Star Vegas and Aristo are returning to full scale operations, our outlook is promising, and we’re targeting future earnings growth.”

He added: “The travel flows between the Thailand/Cambodia and Vietnam/China borders are expected to continue to ramp-up and benefit our operations.”