GGRAsia – Donaco posts US$2.7mln EBITDA for March quarter

Donaco posts US$2.7mln EBITDA for March quarter

May 02, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino operator Donaco International Ltd reported quarterly earnings before interest, taxation, depreciation and amortisation (EBITDA) of AUD4.07 million (US$2.69 million) for the three months to March 31.

That was up from the AUD1.78-million EBITDA in the preceding quarter, and compared to a negative figure of AUD1.37 million in the prior-year period, according to a Friday filing to the Australian Securities Exchange.

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

The company reported net revenue of AUD7.55 million for the first three months of 2023, up from AUD5.30 million in the fourth quarter of 2022.

“The March quarter marks a significant turnaround for Donaco, with promising performance from DNA Star Vegas and early progress from the gradual reopening of Aristo,” said non-executive chairman Porntat Amatavivadhana, as cited in the results filing.

“After a long period of impact from the pandemic, we are pleased to see positive signs of recovery and a promising outlook for the business,” he added. “The recommencement of international travel flow, particularly from Chinese tourists, is a trend that is expected to benefit our operations in Cambodia and Vietnam.”

The reporting period coincided with the DNA Star Vegas property “returning to full operational capacity,” stated the Australia-listed firm.

The Cambodia venue generated net revenues of AUD6.29 million in the March quarter, up from AUD5.12 million in the preceding quarter. Property EBITDA stood at AUD4.17 million, an increase from the AUD2.69 million achieved in the fourth quarter of 2022.

Donaco said its Aristo casino hotel in Vietnam “began a gradual reopening with encouraging momentum in the quarter”.

The casino operator said Aristo had reduced the minimum monthly turnover threshold to qualify as a junket, to CNY3.00 million (US$433,812) from CNY6.00 million previously, in a bid to “facilitate the return of junket operators and leading to the accelerated traction in VIP visitors”.

Aristo also “began offering some complimentary services, such as room services and meals, to larger chip players, in order to encourage player activity in the casino,” said its promoter.

Aristo generated net revenue of AUD1.26 million in the three months to March 31, up from AUD0.19 million in the preceding quarter. Property EBITDA stood at AUD0.58 million, compared to a negative figure of AUD0.27 million in the last quarter of 2022.