ASX-listed Donaco International Ltd has reported a 53.8% sequential decline in revenue for the first three months of 2021, impacted by an outbreak of COVID-19 in Cambodia that has heavily impacted its flagship casino, Star Vegas, in Poipet.
Net revenue fell from AU$10.79 million in the first quarter of 2020 and AU$6.0 million in 4Q20 to just AU$2.77 million in 1Q21, with Star Vegas suffering a 54.9% decline in revenue to AU$2.51 million.
In Vietnam, Aristo International Hotel, located near the border with China, continued to endure subdued visitation with net revenue falling from AU$430,000 in the December quarter to just AU$260,000 in Q1. By comparison, Aristo reported net revenue of AU$2.64 million in the first quarter of 2020.
Group-wide EBITDA in Q1 was AU$290,000, down from AU$2,67 million but improved from an EBITDA loss of AU$1.14 million in 1Q20 on reduced operating costs.
“The March quarter was a challenging period due to the COVID-19 pandemic with the [Cambodian] outbreak in [February] leading to a more severe outbreak in April,” said Non-Executive Chairman Porntat Amatavivadhana.
“This is an external factor which unfortunately we cannot control. Nonetheless, we have continued to focus on what we can control, our internal operations and protecting our balance sheet. We have done everything to manage what had to be managed internally within the business. We keep a conservative approach and we are ready to move forward once external conditions improve.
“Encouragingly, we are also on track to repay all remaining debt with Mega Bank by this coming 30 June, and we continue to explore additional opportunities to access the gaming market.”
Star Vegas was forced to suspend operations again last week due to the spread of COVID-19 throughout Cambodia’s Banteay Meanchey Province.
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