Australian-listed Donaco International Ltd has reported a Group EBITDA loss of AU$2.7 million (US$1.9 million) in the three months to 30 September, hindered by the impact of COVID-19 which saw its casinos in Cambodia and Vietnam either closed or only partially opened throughout the quarter.
According to the company’s 3Q20 results announcement on Friday, Donaco recorded net revenue of just AU$330,000 for the quarter of which Star Vegas in Poipet – which reopened to patrons located in Cambodia on 25 September – contributed just US$90,000 from its six days of operation. Average daily visitation at Star Vegas was just 52 people compared with a 3Q10 average of more than 4,000.
Likewise, Aristo International Hotel in Vietnam averaged 12 players per day for the quarter versus 486 players last year, with revenue of just US$140,000 across the three months. Aristo reopened its doors in May but the ongoing closure of the nearby border with China has prevented any meaningful business.
“COVID-19 continued to impact Donaco’s operational performance during the September quarter, but the Company has responded with pragmatic initiatives to maintain a healthy financial position once our casino operations fully reopen,” said Non-Executive Chairman Porntat Amatavivadhana.
“The limited reopening of Star Vegas is a positive development for the business, and the renewed Board and management team continues to emphasize preserving shareholder value by controlling the Company’s corporate and operational costs.
“We successfully completed a capital raising in the quarter, which has strengthened our balance sheet and gives us headroom to weather the COVID-19 impacts and look towards long-term growth.”
Donaco said it managed to reduce its monthly cash burn to around US$700,000 during the September quarter.
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