Southeast Asian casino operator Donaco International has reported EBITDA of AU$5.06 million (US$3.34 million) for the three months to 31 December 2023, slight down compared to the September quarter but 184% higher year-on-year.
According to information filed with the Australian Securities Exchange on Tuesday morning, the quarterly results followed a decline in revenues at the company’s Cambodian casino Star Vegas in Poipet, partially offset by improved results at Aristo International in northern Vietnam.
Group net revenue of AU$9.73 million (US$6.43 million) comprised AU$6.12 million (US$4.05 million) at Star Vegas, down 15.5% quarter-on-quarter, and AU$3.61 million (US$2.39 million) at Aristo, up 45.6%.
The decline in revenues at Star Vegas was largely due to lower VIP rolling chip turnover.
Donaco, which stated a cash position of AU$25.12 million (US$16.6 million) following recent cash injection from majority shareholders, said it is seeing stable visitation numbers from international tourism but expects a considerable improvement in 2025 once the new Sapa airport in Lao Cai, located near the Aristo property, opens. This, the company added, is projected to increase visitation to the region by up to 1.5 million passengers annually, providing an “influx of tourism”.
Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, said, “The December Quarter for Donaco represented a period of stringent financial management as the Company continues to report robust financial and visitation numbers.
“Aristo outperformed expectations, resulting in considerable net revenue and property level EBITDA growth, and high levels of tourism coming back to the region following the reopening of borders between China and Vietnam.
“The tourism campaign recently launched by the Cambodian Government has also been successful, leading to increased visitation from Thailand over the past three months.
“After a promising first half of FY2024, I am optimistic about the remainder of the financial year as our operations continue to strengthen over the coming months. I am confident that Donaco will continue to leverage the rise in tourism to the region, and that our turnaround strategy will deliver solid results.”
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