GGRAsia – Star Vegas VIP turnover up 43 pct 1Q fiscal: Donaco

Star Vegas VIP turnover up 43 pct 1Q fiscal: Donaco

Oct 26, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck

Southeast Asia casino operator Donaco International Ltd on Monday announced that VIP rolling chip turnover at Star Vegas Resort and Club casino in Poipet, Cambodia, rose 43 percent year-on-year in the “September quarter”, to approximately AUD1.30 billion (US$941.7 million).

Donaco’s financial year runs from July 1 to June 30 the following calendar year, meaning that September 30 is the end of its first fiscal quarter in the current financial year.

Referring to the September quarter, the firm said in its latest filing to the Australian Securities Exchange: “Trading in that period was pleasing, and the business is on track.” It added that a new VIP room at the property – operated by Macau VIP gaming promoter Heng Sheng Group – had only been operational for 10 days in the September quarter. Donaco had announced in August a deal with the VIP promoter to bring high roller gamblers to the property, which is located on Cambodia’s border with Thailand. Casinos are illegal in the latter country.

Donaco concluded in July – for a consideration of US$360 million – the acquisition of Star Vegas.

Donaco said in its Monday filing that “actual” (i.e., not normalised for variation in hold rate) gross revenue from VIP table games at Star Vegas for the period was AUD43.95 million, while main hall table games actual gross revenue was AUD6.15 million, and slot machine actual gross revenue was AUD13.43 million.

Actual property earnings before interest, taxation, depreciation and amortisation rose 29 percent in the quarter, to AUD24.99 million.

The company said that growth at Star Vegas had been achieved “despite postponement of marketing activities” including a baccarat tournament for VIP players being moved to “late October”.

“This was due to management focus on launch of [the] Heng Sheng VIP gaming room,” the company said in its Monday filing.

The company also gave – in its latest business update – some information on operational performance in the quarter ending September 30 for its other property, Aristo International Hotel. The casino hotel is in northern Vietnam, near that country’s border with China.

Donaco said that at Aristo in the first quarter fiscal, actual VIP rolling chip turnover was flat year-on-year, at approximately AUD442.9 million. VIP table games actual gross revenue was AUD7.81 million. Main hall table games actual revenue at Aristo for the period was AUD2.56 million.