Donaco International Limited, operator of Aristo International Hotel and Star Vegas Resort ended Q2 with a revenue deficit; group pins its hopes of a bounce-back on the influx of Chinese tourists.
Original story by Asia Gaming Brief
Donaco has seen a decline in its net revenue and operational results in the second quarter of this year, despite an improvement in its Aristo International Hotel property in Vietnam after border reopenings with China.
The hotel and gaming group ended the second quarter of this year with AU$6.9 million ($4.57 million) in net revenue, a small decrease from the previous quarter, with EBITDA cut almost in half to AU$2.4 million.
Much of the decrease could be attributed to poor performance by Donaco’s Star Vegas property on the Cambodia-Thailand border.
Still, group-wide revenue was considerably higher than the AU$1.1 million ($730,000) reported a year earlier, with EBITDA reversing from losses reported in the second quarter of last year to AU$2.40 million ($1.59 million) this year.
The group’s Aristo International Hotel (Aristo) in Vietnam also managed to improve its revenue to AU$2.51 million ($1.66 million) and EBITDA to AU$1.31 million ($870,000), with Donaco expecting the property to reach ‘full operating capacity’ in the current quarter.
“The June quarter marked an important step for Donaco as we reach a return to full-scale operations. “Pleasingly, the outlook for our business remains promising,” Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana, said in the group’s latest financial report.
“Travel inflows from China to Vietnam are expected to continue to ramp-up and the Cambodian government recently launched a major tourism campaign to attract Thai visitors, which is highly encouraging for our Star Vegas casino.”
Recently, another Vietnam casino operator announced that it has incurred its 15th consecutive quarter loss. Royal International saw a decline in revenue, witnessing a
42% year-on-year drop that amounted to VND24 billion (US$1.01 million). This is in spite of a recovery of tourism in the country.
Royal International operates a prominent resort located in the scenic Bai Chay area, situated in the city of Ha Long, Quang Ninh. Offering a diverse range of amenities, including a casino, hotel and luxurious villas.
Learn more about Donaco’s plans to leverage on travel inflows from Vietnam’s northern neighbor in the original article at Asia Gaming Brief here: https://agbrief.com/news/vietnam/02/08/2023/donaco-hoping-chinese-tourism-in-vietnam-will-improve-groups-overall-performance/
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