ASX-listed Donaco International Limited has reported a 10.0% decrease in group-wide revenue to AU$10.03 million (US$6.4 million) in the three months to 31 March 2025, impacted by a losing quarter in the VIP segment at its Cambodian casino Star Vegas.
According to information made public on Tuesday, net revenue at Star Vegas declined by 28.7% year-on-year and 12.4% compared with the December 2024 quarter, impacted by a significant drop in VIP rolling chip turnover and exceedingly poor luck. That’s despite the number of casino players actually increasing from 872 players to 928 players year-on-year. The Q1 figure was only slightly down on 957 players in 4Q24.
Donaco noted that Star Vegas suffered from VIP loss for the quarter with a win rate of -1.5%, with Property Level EBITDA almost halved year-on-year as a result to AU$3.48 million (US$2.2 million).
At the company’s Vietnam casino Aristo International, located near the northern border with China, net revenue was basically steady at AU$3.75 million (US$2.4 million) with Property Level EBITDA of AU$2.31 million (US$1.5 million).
The group also Donaco strengthened cash position in 1Q25 from AU$36.3 million (US$23.3 million) three months earlier to AU$40 million (US$25.7 million).
“Despite continuing to report robust visitation numbers and applying stringent financial management, the operating environment proved challenging in the March quarter,” said Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana.
“Aristo continued to perform steadily during the quarter, reporting revenue growth and stable EBITDA. We also continued to see visitation numbers grow with higher levels of tourism in the region following reduced border restrictions and government tourism campaigns.
“However, we continue to diligently monitor the Thai government’s proposed Draft Entertainment Complex Business Act and evaluate its potential implications for our Star Vegas operations.”
Porntat also referenced the recent announcement that Donaco had entered into a binding Scheme Implementation Deed with On Nut Road Ltd (ONR) – a special purpose vehicle managed by Hong Kong’s Argyle Street Management Limited – for ONR to acquire 100% of the shares in Donaco it doesn’t currently own, reiterating encouragement for investors to vote in favor of the buyout.
“The Board has carefully considered the merits of the Scheme, and we believe On Nut Road Limited’s offer provides compelling value to Donaco shareholders, representing a 54.10% premium to the 90-day volume-weighted average share price,” he said.
“The Board continues to unanimously recommend that Donaco shareholders vote in favour of the Scheme at the Scheme Meeting in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Donaco shareholders”
