Donaco posts decline in net revenue for Q3

The company has reported net revenue of AU$10.03m.

Australia.- Donaco International has shared its financial results for the three months to March 31. It’s reported that net revenue declined 10 per cent quarter-on-quarter to AU$10.03m (US$6.4m). Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped from AU$5.7m to AU$4.1m (US$2.6m) while Property level EBITDA was AU$3.4m (US$2.1m).

DNA Star Vegas in Cambodia saw net revenue of AU$6.2m (US$4m), down 12.4 per cent from the previous quarter and 28.7 per cent in year-on-year terms. Property-level EBITDA was AU$3.4m (US$2.24m). Average daily visitation 928.

Revenue from Aristo Casino in Vietnam grew by 0.54 per cent to AU$3.75m (US$2.4m). The property’s EBITDA was AU$2.3m (US$1.5m), flat sequentially. Average daily visitation increased to 336.

Donaco’s non-executive chairman, Porntat Amatavivadhana, said: “Despite continuing to report robust visitation numbers and applying stringent financial management, the operating environment proved challenging in the March quarter.

“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.

“During the quarter, Donaco entered into a Scheme Implementation Deed with On Nut Road Limited for On Nut Road Limited’s proposed acquisition of the shares in Donaco that it does not already own. 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 per cent premium to the 90-day volume-weighted average share price.

“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.”

Donaco said it has been monitoring the development of casino legislation in Thailand. It said that while there is no immediate effect on Donaco’s financials, the potential legalisation of casinos in Thailand could have implications on Star Vegas’ operations and cross-border tourism in the region, increasing direct competition in the market.