Donaco reports revenue drop at Star Vegas
Star Vegas’ net revenue fell by 31.4 per cent quarter-on-quarter.
Cambodia.- Donaco International’s second-quarter financial results show the impact of restrictions at the Thailand-Cambodia border on its DNA Star Vegas casino in Poipet. Net revenue fell by 31.4 per cent quarter-on-quarter from AU$6.28m (US$4.02m) to AU$4.31m (US$2.81m), while Property-level EBITDA declined by 48.9 per cent to AU$1.78m (US$1.16m). Average daily visitation fell to 758 players, from 928 in the previous quarter.
Donaco stressed that Star Vegas’s operations remain reduced since its primary customers from Thailand are unable to cross the border. Since the border closure, the customer base has consisted of foreigners in Poipet, primarily expatriates and businesspeople from Indonesia, China and Korea.
Donaco’s Aristo International Hotel in northern Vietnam saw net revenue increase by 10.9 per cent to AU$4.16m (US$2.71m) and property-level EBITDA by 9.1 per cent to AU$2.52m (US$1.64m). Group-wide net revenue was down 15.6 per cent to AU$8.47m (US$5.52m) and EBITDA by 10.2 per cent to AU$3.68m (US$2.4m).
Non-executive chairman, Porntat Amatavivadhana, commented: “Donaco has seen a challenging operating environment in the June quarter, following changes in the legislative and political environment. Aristo has continued to perform in line with previous quarters, with stable revenue growth and improved EBITDA. Visitation numbers also slightly improved over the quarter, following an increase in tourism to the region.
“On the other hand, Star Vegas has had a challenging quarter, following a border dispute between Thailand and Cambodia, which has significantly impacted its operations. The border dispute has resulted in reduced activities at Star Vegas, with its primary customer base unable to cross the border from Thailand. As the border dispute is ongoing and subject to rapid change, the short-term outlook for tourism in the region remains uncertain. However, we will continue to closely monitor the situation.”
