Donaco posts net revenue of US$6.66m for first half
Donaco said the half-year saw a turnaround period after the reopening of DNA Star Vegas in Cambodia.
Australia.- Donaco International has reported revenue of AU$9.9m (US$6.66m) and EBITDA of AU$3.3m (US$2.2m) for the first six months of the financial year 2023. Its main operation, DNA Star Vegas in Cambodia, reopened in June 2022 after being closed for over a year due to Covid-19 restrictions.
The reopening initially occurred on a limited scale before full operations resumed, resulting in net revenue of AU$9.28m and EBITDA of AU$4.94m. Aristo Casino in Vietnam, which has been operating on a limited basis since May 2020 due to the lack of travel from China delivered net revenue of AU$0.6m and negative EBITDA of AU$0.4m.
The company reported a non-cash asset impairment charge of AU$22.2m for the Aristo Hotel and a AU$4.4m impairment for Star Vegas due to the subdued operating performance caused by Covid-19 and higher interest rates.
Paul Porntat, Donaco’s non-executive chairman, said: “We are encouraged by the performance of DNA Star Vegas since the operation’s reopening, demonstrating an encouraging outlook for the business, as we come out from the effects of the pandemic.
“The long-term future for both operations looks bright, with international travel flow recommencing from China, and the gradual reopening of Aristo in the coming months.
“I am optimistic about the future path for Donaco. We have a healthy balance sheet, and despite taking a conservative approach to the carrying value of the casinos we have a strong operational base. The travel flows between the Thailand/Cambodia and Vietnam/China borders will continue to improve directly benefiting the Company’s performance.”
The company says it plans for Aristo to return to full-scale operations over the coming months, while strict cost control will remain a priority. To attract VIP visitors, Aristo has reduced the monthly minimum turnover to qualify as an active junket from RMB6m to RMB3m.
This move is intended to encourage the return of junket operators, which could accelerate a recovery in the VIP business. Aristo will provide some complimentary services to larger chip players to encourage player activity in the casino.