Donaco posts net revenue of US$6.79m for Q1
Net revenue was up 9.52 per cent year-on-year but down 4.09 per cent sequentially.
Australia.- Donaco International has shared its financial results for the first three months of the financial year 2024/25. It’s reported that net revenue was AU$10.25m (US$6.79m), down 4.09 per cent in quarter-on-quarter terms but up 9.52 per cent year-on-year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined from AU$6.34m (US$4.15m) to AU$5.5m (US$3.6m) sequentially. The casino operator attributed the fall to Star Vegas’ lower-than-expected performance, mainly due to registration fees of new slot machines of AU$0.37m in September.
DNA Star Vegas in Cambodia produced net revenue of AU$6.30m (US$4.17m), down 7.89 per cent from AU$6.84m (US$4.45m) recorded in the previous quarter. The figure was also down 12.96 per cent in year-on-year terms. Property-level EBITDA was AU$3.83m (US$2.54m). Average daily visitation remained stable at 941 players, driven by the company’s membership loyalty program launched in January.
Revenue from Aristo Casino in Vietnam slightly declined from AU$3.97m (US$2.58m) to AU$3.95m (US$2.62m) in quarter-on-quarter terms. When compared to the first quarter of the financial year 2023/24, net revenue was up 59.27 per cent. The property’s EBITDA was up 2.02 per cent to AU$2.52m (US$1.67m). Average daily visitation increased from 291 to 306 players sequentially.
Donaco ended the September Quarter with an increased cash position of AU$33.02m (US$21.85m). Payments to related parties of the entity and their associates totalled AU$195k, in the form of payments to directors and their associates for salaries and contracted services.
Donaco’s non-executive chairman, Porntat Amatavivadhana, said: “In the September Quarter, our two operations, DNA Star Vegas and Aristo, performed in line with the prior quarter, including steady daily visitation numbers. Looking specifically at Star Vegas, we were expecting a higher September Quarter for the asset, which was impacted by the registration fees from new slot machines, equivalent to AU$0.37m.
“Our cash position remains strong and increased to AU$33.02m. We remain committed to executing our strategy as we navigate Southeast Asia’s evolving gaming industry. As part of this, we are evaluating potential disruptors, such as the proposed Integrated Entertainment Business Act in Thailand, a bill to allow casinos to operate legally within entertainment complexes in the country, and the separate Aristo tax matter.”
Donaco noted the potential legalisation of casinos in Thailand may affect DNA Star Vegas’ operations and cross-border tourism in the region. The casino operator said: “Donaco is currently assessing how this development might impact its business. While there is no immediate effect on Donaco’s financials, should the bill pass, future implications may require re-evaluation, particularly as the majority of DNA Star Vegas’ patrons come from Thailand. Donaco will continue to closely monitor the situation and assess any potential impacts on its operations.”
See also: Legalisation of casinos in Thailand: draft bill could be sent to cabinet by year-end
The company reported that Vietnam’s General Department of Taxation (GDT) had rejected Aristo’s appeal concerning the tax owed for floating chips. Subsequently, Aristo filed a complaint with the local court and was granted permission in October to begin legal action to contest the basis and validity of GDT’s ruling. The company will provide an update regarding the outcome of the legal action in due time. The potential liability of around AU$8,857,906 (based on the spot rate as of June 30, 2024) could affect Donaco’s financial situation if GDT’s ruling remains in effect.
