The Australian-listed operator Donaco International returned to positive EBITDA in the last quarter of 2020.
Australia.- Donaco International has reported that it returned to positive earnings before interests, tax, depreciation and amortisation (EBITDA) in the last three months of 2020.
The company reported that it had seen a turning point in its finances since the reopening of the Star Vegas Resort in Cambodia and the Aristo International Hotel in Vietnam.
The last quarter saw positive EBITDA of AU$3.57m (US$2.73m).
The Cambodian resort showed positive EBITDA of AU$3.7m (US$2.83) while the Vietnam operation still had negative EBITDA of -AU$0.13m (-US$99.500) during this period.
Donaco said the numbers are the results of “a number of strategic initiatives” carried out by its new board of directors, appointed in September.
Those include a shift in customer targeting with a renewed focus on attracting clientele from the local region to Star Vegas, a continued cost control strategy, restructuring arrangements with gaming machines and junket operators and the introduction of retail outlets.
These measures combined with the relaxation of Covid-19 restrictions repositioned the business and allowed casinos to operate as “flexibly as conditions dictate”.
The company says its strategy for CY21 will be to build on these initiatives, underpinned by a strengthened balance sheet and cost-control strategy.
Non-executive chairman Porntat Amatavivadhana said: “The December quarter was a turnaround period for Donaco with a return to positive EBITDA.
“We are extremely encouraged that since the casinos’ limited reopening, Star Vegas is no longer making a loss and the outlook for Aristo is increasingly positive.”
“Our strategy for 2021 will build on these pragmatic initiatives, underpinned by a strengthened balance sheet as the performance from Star Vegas and Aristo continues to improve and provides a solid platform for growth.”