Southeast Asian casino operator Donaco International Ltd says it returned to positive EBITDA in the six months to 31 December 2020, driven by a strong finish to the year following reopening of its casinos in Cambodia and Vietnam.
The Australian-listed firm reported EBITDA of AU$200,000 in 1H21 (financial year ending 30 June 2021), of which EBITDA of AU$2.7 million was posted from October to December. That was despite revenue plummeting from AU$40.9 million in the prior year period to just AU$6.3 million.
According to Donaco’s results announcement published Friday, rigorous cost controls helped reduce operating expenses from AU$24.6 million in 1H20 to just AU$4.1 million.
The company reported a statutory net profit after tax of AU$42.5 million thanks to a settlement agreement reached with the vendors of the land upon which its Cambodian casino, Star Vegas in Poipet, sits.
“Donaco’s bolstered balance sheet has placed the Company in the optimal position to achieve long-term growth once the COVID-19 situation ameliorates and cross border travel recommences,” said Non-Executive Chairman Porntat Amatavivadhana.
“We remain on track to pay down the remaining debt we have due with Mega Bank during FY21, which will enhance our position even further.
“We are optimistic that the COVID-19 situation will improve in FY21 as vaccinations begin across the South-East Asian region.
“In the interim, a key priority of the renewed and stabilised Board and Executive team remains the cost control strategy, which will support us in continuing to navigate the COVID-19 situation successfully.”
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