ASX-listed Southeast Asian casino operator Donaco International Ltd saw its EBITDA more than double sequentially in the September 2023 quarter, buoyed by the return of international tourists to its casinos in Cambodia and Vietnam
EBITDA of AU$5.73 million (US$3.65 million), up from AU$2.40 million (US$1.53 million) in 2Q23 on a 40.7% quarter-on-quarter increase in net revenue to AU$9.71 million (US$6.19 million).
This included revenue of AU$7.24 million (US$4.61 million) from Star Vegas in Poipet, Cambodia, where the company managed to record a VIP win rate of 3.87% on VIP turnover of AU$41.8 million (US$26.6 million). Star Vegas had booked losses in the VIP segment in recent quarters.
At Aristo International in northern Vietnam, net revenue of AU$2.48 million (US$1.58 million) was stable quarter-on-quarter despite VIP turnover falling by 10.9% to AU$287.7 million (US$183,000).
Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, said the 3Q23 results “highlight the effectiveness of our turnaround strategy and operational execution as the business delivers improved performance.
“I am pleased to report that the outlook for our businesses remains positive. The increase in travel from China to Vietnam provides a promising outlook as we’ve entered the 2024 financial year.
Moreover, the recently launched tourism campaign by the Cambodian Government aimed at attracting Thai visitors is a highly encouraging development for our Star Vegas casino, which is poised to benefit significantly from increased tourism in the region.
“We are confident that our business is well-positioned to capitalize on this positive trend, and we remain optimistic about the future. We believe that our strategic approach and commitment to delivering exceptional customer experiences will continue to set us apart in a competitive industry. Overall, we aim to provide long-term value to our shareholders, and we are excited about the opportunities that lie ahead.”
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