Donaco revenue plummeted 76.4% in FY22

The company attributed the decline in revenue to the temporary closure of The Star Vegas casino between April 27 2021 and June 18 of this year.

Australia.- Donaco International has reported that revenue for the financial year to June 30 was down 76.4 per cent year-on-year from AU$10.32m to AU$2.44m. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) was a negative AU$4.41m.

Despite this, Donaco repaid its full loan facility with its main lender Mega Bank. Donaco also reported a statutory net loss after tax of AU$16.49m related to a settlement of a non-competition dispute relating to Star Vegas.

Donaco’s Star Vegas was closed from April 27 2021 following the order from the Cambodian local Government for the temporary closure of all casinos in the Banteay Meanchay region. The casino reopened on June 18, 2022.

Due to this, the casino reported annual revenue down 89.5 per cent to AU$1.0m. Net gaming revenue amounted to AU$0.8m. It posted a negative EBITDA of AU$1.5m, versus a positive EBITDA of AU$4.2m in the prior year.

The company stated: “Keeping costs down has remained Donaco’s priority, leading to a reduction in operational expenses by 51.0 per cent.”

Meanwhile, Aristo Casino in Vietnam, reported revenue of AU$1.5m, up 23.9 per cent when compared to the previous year and net gaming revenue of AU$1.2m. Donaco said the venue was affected by the ongoing closure of the border with China. Average daily visitations reduced by 7.7 per cent during the analysed period. Despite this, net revenue increased by 23.9 per cent to AU$1.5m. Aristo’s EBITDA loss narrowed to AU$0.2m, from AU$0.9m.

The company said it expects an encouraging outlook for the fiscal year 2023 with Star Vegas progressively advancing towards full operational capabilities over the coming months.