Donaco International Ltd saw its revenue fall 58.7% to AU$10.5 million (US$6.8 million) and EBITDA drop to negative AU$1.13 million (US$733,000) in the three months to 31 March 2020, heavily impacted by the onset of COVID-19 and the resultant restrictions on casino operations and border closures.
“This was a tough quarter for Donaco with both of our casinos impacted by COVID-19,” said Donaco Chairman Mel Ashton in the company’s 1Q20 results release.
“Now that our casinos are temporarily closed, the preservation of liquidity is a key priority. We will continue to make sure we have adequate measures in place and remain in a healthy financial position for when operations restart.”
At Star Vegas in Cambodia, revenue fell from US$13.9 million in 1Q19 to US$5.5 million with EBITDA of US$400,000. Average daily visitation dropped to 2,584 from 4,237 a year earlier.
In Vietnam, Aristo International Hotel saw its revenue decline from US$4.5 million to US$1.8 million with Property level EBITDA of just US$300,000.
Donaco revealed negative group-wide cash flow from operations for the quarter of AU$5.1 million (US$3.3 million), with net debt increasing from AU$50.9 million in the prior quarter to AU$60.8 million (US$39.4 million).
As previously reported by Inside Asian Gaming, Donaco is enduring a cash burn of between US$800,000 and US$900,000 per month since its properties closed on 1 April.
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