Donaco dips to year loss as Star Vegas shut most of time

September 1, 2022 Cambodia Earnings & Filings

Border casino operator Donaco International Ltd slipped to a nearly AUD16.7-million (US$11.5-million) loss in the financial year to June 30, compared to a profit of AUD24.9 million in the prior 12 months. The latest result coincided with its main asset, DNA Star Vegas (pictured), a gaming resort in Poipet, Cambodia, being shut for almost the entire reporting period as a Covid-19 countermeasure.

DNA Star Vegas, on the border with Thailand, closed in April 2021 and only reopened in mid-June this year.

But Donaco’s other asset, Aristo International Hotel and associated casino at Lo Cai, on Vietnam’s border with China, had been running on a limited basis since May 2020, and had switched to attracting “clientele from the local region,” said the firm in its results filed on Tuesday to the Australian Securities Exchange.

DNA Star Vegas’ revenue in the latest financial year was AUD1.0 million, down 89.5 percent on the prior financial year. Net gaming revenue amounted to AUD0.8 million.

The property’s earnings before interest, taxation, depreciation and amortisation – excluding non-recurring items – was a negative AUD1.5 million, versus positive EBITDA of AUD4.2 million on the prior year.

It had an average of 835 visitors per day, compared to 271 per day in financial year 2021. The “recovering average daily headcount” was associated with the fact “the land border between Cambodia and Thailand has now reopened,” said the firm.

Aristo’s total revenue for the year to June 30 was AUD1.5 million, up 23.9 percent year-on-year. The property’s net gaming revenue was AUD1.2 million.

Its EBITDA loss – excluding non-recurring items – narrowed to AUD0.2 million, from AUD0.9 million.