Donaco confirms impact of Thai border restrictions on Star Vegas operations

Donaco has observed a 62 per cent reduction in the average daily headcount and a 42 per cent reduction in daily hotel occupancy. 

Cambodia.- Donaco International has reported that increased restrictions at the Thailand-Cambodia border have had an impact on its DNA Star Vegas casino in Poipet near the border. Restrictions were introduced on June 8 after a brief military clash on May 28 and bilateral talks on June 14 failed to reach a resolution.

There are reduced operating hours at the Aranyaprathet-Poipet border checkpoint and Thailand has banned Thai nationals from crossing for non-essential travel, such as for tourism and gambling. As a result, Star Vegas has observed a 62 per cent reduction in the average daily headcount and a 42 per cent reduction in daily hotel occupancy since the measures were imposed. 

“This trend is expected to impact Star Vegas’ profits for the month of June. While both governments have expressed commitments to resolving the border tensions, management will continue to monitor the situation closely and update shareholders as appropriate,” the company said.

For the first half of the financial year, Donaco reported net revenue of AU$21.83m (US$13.6m), up 12 per cent in year-on-year terms, while earnings before interest, taxation, depreciation and amortisation (EBITDA) reached AU$11.39m (US$7.10m), up 17.0 per cent.