ASX-listed Donaco International Limited has produced its first EBITDA-positive quarter in more than a year in the three months to 30 September 2022, buoyed by the reopening of Star Vegas Resort & Club in Poipet, Cambodia.
Shuttered on 27 April 2021 and only reopening on 18 June 2022, Donaco noted in a Friday filing that while operations had recommenced on a limited scale, they progressively ramped up throughout the September quarter.
As a result, Donaco recorded revenue of AU$4.53 million (US$2.9 million) in 3Q22, up from just AU$760,000 (US$488,000) a year earlier, while EBITDA of AU$1.5 million (US$963,000) reversed an AU$1.04 million EBITDA loss in the same period last year.
Star Vegas contributed the majority of that revenue, to the tune of AU$4.1 million (US$2.6 million) – up from AU$500,000 (US$321,000) in 3Q21 – while property EBITDA of AU$2.22 million (US$1.42 million) reversed a loss of AU$620,000 (US$398 million).
Conversely, Aristo International Hotel in Vietnam – located near the border with mainland China – continues to operator on a limited basis with 3Q22 revenue down 39.4% year-on-year to AU$430,000 (US$276,000) and an EBITDA loss of AU$90,000 (US$58,000).
In announcing its results, Donaco said it is currently focused on the continual ramp up of Star Vegas where it is encouraged by a “positive external environment” given initiatives by Cambodia and Thailand to increase travel flows between the two countries.
“For example, late in the September quarter, the Cambodian and Thai Governments agreed to speed up the reopening of the last three border crossings that remain closed between the two countries,” it said.
Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, added, “I am delighted to see Donaco achieve positive EBITDA for the first time in a quarter since early 2021 and importantly there is substantial further growth potential on the horizon.
“Star Vegas has delivered a strong result so soon after reopening, which is a testament to the operational strategy Donaco has implemented and one which we anticipate will be sustainable.
“We are confident of being able to replicate this strategy at Aristo in the future, which currently remains open on a limited basis.
“As travel patterns in the region continue to improve, in tandem with the incoming Sapa Airport and Aristo’s status as the only 5-star hotel in the Lao Cai province, the long-term future for this operation is very bright.”
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