GGRAsia – Donaco quarterly EBITDA more than doubles sequentially

Donaco quarterly EBITDA more than doubles sequentially

Oct 30, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Australia-listed casino operator Donaco International Ltd reported sequential increases in both group-wide net revenue and earnings before interest, taxation, depreciation and amortisation (EBITDA) in the quarter to September 30. The quarterly earnings were supported by a “strong performance” at its DNA Star Vegas casino property (pictured in file photo) on Cambodia’s border with Thailand, stated the company in a Monday filing.

Donaco reported group net revenue of AUD9.7 million (US$6.2 million) in the three months to September 30, up 40.7 percent from the preceding quarter. EBITDA for the latest reporting period stood at just above AUD5.7 million, up 138.8 percent sequentially. The reporting quarter is also the company’s first quarter of fiscal year 2024.

In the quarter ended September 30, DNA Star Vegas reported net revenue of AUD7.2 million, up 65.7 percent from the AUD4.4 million recorded in the three months to June 30; the property’s EBITDA was AUD5.1 million in the latest reporting period, up 182.3 percent sequentially.

Donaco’s Aristo International Hotel in Vietnam’s Lao Cai province – near the border with China – recorded net revenue of nearly AUD2.5 million in the September quarter, down slightly by 1.2 percent from the previous quarter. The property’s EBITDA stood at AUD1.2 million, down by 6.9 percent from the three months to June 30.

“Donaco has continued its strong momentum and turnaround following Covid-19, and this is reflected in our September quarter,” said Donaco’s non-executive chairman, Porntat Amatavivadhana, in prepared remarks included in Monday’s filing. “The results highlight the effectiveness of our turnaround strategy and operational execution as the business delivers improved performance.”

He added: “The recently launched tourism campaign by the Cambodian government aimed at attracting Thai visitors is a highly encouraging development for our Star Vegas casino, which is poised to benefit significantly from increased tourism in the region.”

The casino operator also noted in the filing that the “consistent increase” in Chinese tourists visiting Vietnam was expected to benefit Aristo International. “Furthermore, the construction of the Sapa airport in Lao Cai, the region where the casino is located, is progressing well and is poised to unlock substantial economic potential for Donaco,” the group said, adding that the Sapa airport is expected to open in 2025.

The company said it continued to prioritise “cost management”, ending the latest reporting period with a cash position of AUD22.02 million, versus AUD16.7 million as of June 30 this year.

The casino firm reported net revenue of AUD24.3 million in the 12 months to June 30, compared to AUD2.4 million in the previous year. The company posted EBITDA of AUD9.6 million in its latest full financial year, versus a AUD4.4-million EBITDA loss in the prior year.