Donaco Reports Strong Q2 Results Amid Operational Challenges

Cambodian and Vietnamese casino operator Donaco International Limited reported notable financial results for the second quarter of this year despite operational challenges. The company’s net revenue rose to AU$9.73 million ($6.44 million), a slight increase from the previous quarter’s AU$9.7 million ($6.2 million).

EBITDA declined to AU$5.06 million ($3.34 million) from AU$5.7 million ($3.6 million), though it showed a substantial year-on-year increase of 184 percent.

The Aristo International Hotel in Vietnam experienced a 45 percent quarter-on-quarter revenue increase to AU$3.61 million ($2.39 million), with property-level EBITDA up by 83 percent to AU$2.24 million. This growth is attributed to the reopening of borders with China, which boosted daily visitation numbers. In contrast, DNA Star Vegas in Cambodia reported net revenue of AU$6.12 million ($4.05 million) and property-level EBITDA of AU$3.61 million, with performance declining due to reduced visitor numbers.

Donaco’s non-executive chairman, Porntat Amatavivadhana, highlighted that the December quarter benefited from stringent financial management and strong performance at the Aristo, driven by increased tourism following China’s border reopening. He expressed optimism for the remainder of the financial year, citing ongoing tourism campaigns and upcoming infrastructural developments, such as the Sapa airport near the Aristo, expected to boost visitation and revenue.

The company also noted potential disruptors, including the possible legalization of casinos in Thailand, which could affect Donaco’s Star Vegas operations, and a tax audit concerning unredeemed chips at the Aristo International Hotel in Vietnam.

Source: AGB