Australian-listed Donaco International Ltd says it returned to profitability in the third quarter of the year.
Australia.- Donaco International reported significant increases in revenue and Group’s EBITDA thanks to strong growth at Vietnamese casino Aristo.
On Friday, the Asian casino operator, Donaco issued a trading update for the three-month period ending September 30; during which the company said its results showed “a very strong improvement” comparing to the same period last year.
The company saw revenues rise 42% to €14,9 million; and Group EBITDA by 167% to €5,45 million in the third quarter.
“Higher revenues and tighter cost control across the group generated a strong increase in EBITDA,” said the company. Moreover, the net profit performance reflects a slight increase in depreciation and amortisation costs.”
Donaco credited the turnaround to increased revenue, particularly at its Aristo International Hotel property in northern Vietnam; and stricter cost controls, including “the departure of unprofitable junkets” at Donaco’s main casino, the Star Vegas in Poipet, Cambodia. Overall revenue at Star Vegas increased by 3% year-on-year in the third quarter, and property EBITDA rose by 7%.
Donaco’s recent history has been dominated by legal disputes involving Star Vegas, including the long-running fight with a Thai group that Donaco hired to run gaming operations at the adjoining Star Paradise casino.
During the September 2019 quarter, a new management team at Star Vegas “began rationalising the VIP junket arrangements, with a focus on eliminating poor quality business practices, and improving margins,” stated Donaco.