Donaco ‘confident’ in cash reserves for 2020
Operator has cash reserves in excess of $11million and is confident it can weather the Covid-19 storm.
Vietnam.- Casino operator Donaco said it was ‘confident’ that its cash reserves will see its venues in Southeast Asia through until the end of 2020 and beyond.
Donaco revealed in a business update on Tuesday that despite closures of its casinos in Vietnam and Cambodia due to the global Coronavirus pandemic, it has enough cash on hand to survive for more than a year.
According to reports from earlier this week, the company estimates that it has a monthly cash burn of up to US$900,000, which includes the cost of maintaining casino assets and covering associated corporate costs.
The firm reports that it currently has a cash balance of US$11.6million, so unless no unexpected costs inflate its published figures, its estimations are correct.
An extract from the statement said: “The temporary action follows the Cambodian Government’s announcement mandating the closure of all casinos from 1 April 2020, alongside the Vietnam Government’s measures to temporarily close all casinos for a period of 15 days from 1 April 2020.”
“As the temporary shutdown of the casinos will have a material impact on Donaco’s operations, the Company is undertaking a range of measures to cut costs to ensure the Company’s sustainability
into the future.
“As a result, Donaco has had to take difficult, but unavoidable, measures in relation to its staff, including reductions in headcount, placing employees on leave, standing down casual staff and deferring non-essential expenditure.”
It also added that tit has no reported cases of Coronavirus within any of its operations.
“During the last few months, the Company took proactive measures to ensure the safety of its people and is pleased to advise of no reported incidences of COVID-19 amongst staff.”