ASX-listed Donaco International Limited reported a group net profit of AU$5.7 million (US$3.7 million) for the six months to 31 December 2023, reversing an AU$36.7 million (US$23.8 million) loss from a year earlier.
The improved result followed the strong business recovery of its Star Vegas casino in Poipet, Cambodia and Aristo International in northern Vietnam following the reopening of nearby borders with Thailand and China respectively.
However, it was Star Vegas making the greatest contribution, where net revenue climbed 44% year-on-year to AU$13.4 million (US$8.7 million) and Adjusted EBITDA by 77% year-on-year to AU$8.7 million (US$5.7 million).
“Star Vegas reported an average daily visitation of 891 players for the first half of FY24, representing a strong turnaround following the lifting of COVID-19 restrictions and increased tourism from Cambodia,” Donaco said.
At Aristo, net revenue increased from just AU$630,000 (US$409,000) in 1H23 to AU$6.1 million (US$4.0 million), while Adjusted EBITDA of AU$3.5 million (US$2.3 million) reversed an AU$360,000 (US$234,000) Adjusted EBITDA loss from a year earlier.
Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, said, “Donaco’s success in the first half of the year is a testament to our effective turnaround strategy, bolstered by operational execution and an influx in tourism and visitations across our venues. Our commitment to improved performance and operational management resulted in increased growth, contributing to a robust balance sheet across our business.
“The positive impact of the recently launched Cambodian Government campaign to attract Thai visitors has significantly benefited Star Vegas, while Aristo commenced a campaign to attract VIP visitors, which also led to increased revenue.
“Following an outstanding 1H FY24, Donaco remains well-placed for sustained growth in the second half of this financial year. Our commitment to executing our strategy, coupled with leveraging international tourism, positions Donaco to deliver solid results.”
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