Net revenue at border-casino operator Donaco International Ltd rose marginally in the quarter ending December 31, judged sequentially, to reach AUD9.73 million (US$6.44 million), versus the September quarter’s AUD9.71 million.
The firm runs the DNA Star Vegas resort (pictured) at Poipet, on Cambodia’s border with Thailand, and the Aristo International Hotel at Lao Cai, near Vietnam’s border with China.
The group’s property-level earnings before interest, taxation, depreciation and amortisation (EBITDA) actually fell 7.6 percent sequentially, to AUD5.85 million in the December quarter, it said in a Tuesday statement to the Australian Securities Exchange.
The group’s rolling chip turnover on VIP gambling was down slightly quarter-on-quarter in the three months to December 31, at AUD325.15 million.
Nonetheless, all the December-quarter numbers were a huge improvement on the December quarter 2022, when operations were still adversely affected by the Covid-19 pandemic.
In the final quarter of 2022, rolling chip turnover had been only AUD22.52 million, property EBITDA had been AUD2.41 million, and net revenue had been only AUD5.30 million, or 54.5 percent of this December quarter’s net revenue.
Donaco’s non-executive chairman, Porntat Amatavivadhana, was cited as saying in the update, referring to DNA Star Vegas’ business environment: “The tourism campaign recently launched by the Cambodian government has also been successful, leading to increased visitation from Thailand over the past three months.”
Though the company noted that its Cambodia property saw a 15.5 percent sequential decline in net revenue in the December quarter, to AUD6.12 million, from AUD7.24 million; and a 29.4 percent dip in property EBITDA, to AUD3.61 million, “due to lower visitation”.
The venue’s average daily visitor volume fell 6.4 percent sequentially in the December quarter, to 861 players, from 930 daily players.
The chairman stated regarding the Vietnam operation: “Aristo outperformed expectations, resulting in considerable net revenue and property level EBITDA growth, and high levels of tourism coming back to the region following the reopening of borders between China and Vietnam.”
Aristo recorded net revenue of AUD3.61 million, a 45.6 percent increase from the previous quarter; and property EBITDA of AUD2.24 million, up 83.6 percent from the September quarter.
Aristo’s daily player average went up 6.6 percent quarter-on-quarter, to 258, from 242. In the December quarter 2022, it had only eight players.
The chairman observed: “After a promising first half of financial year 2024, I am optimistic about the remainder of the financial year as our operations continue to strengthen over the coming months. I am confident that Donaco will continue to leverage the rise in tourism to the region, and that our turnaround strategy will deliver solid results.”
