The impact of the ongoing border dispute between Thailand and Cambodia caused notable impact on the revenues of Donaco International’s Star Vegas casino, located in the border town of Poipet, Cambodia in the second quarter, the company said Wednesday.
Donaco’s 2Q25 financial results show net revenue fell by 31.4% quarter-on-quarter to AU$4.31 million (US$2.81 million) in Q2, while Property-level EBITDA declined by 48.9% to AU$1.78 million (US$1.16 million).
Thailand shuttered most land crossing between the two countries on 24 June following almost a month of political conflict linked to a military clash in late May that left a Cambodian soldier deal. Tensions between the two nations subsequently grew after former Cambodian leader Hun Sen released audio of a conversation between he and Thailand’s Prime Minister, Paetongtarn Shinawatra.
In releasing its Q2 results, Donaco said, “The company’s performance was impacted by increased tensions along the border between Thailand and Cambodia during the quarter. This included a border closure to nearly all travellers, which has directly affected visitation at Star Vegas.
“Star Vegas’ operations remain at reduced activity following border tensions, with its primary customers, who were travelling from Thailand before the border restrictions, unable to cross the border. Since the border closure, the Star Vegas customer base has consisted of foreigners in Poipet, primarily expatriates and businesspeople from Indonesia, China and Korea.”
The situation was different at Donaco’s Aristo International Hotel in northern Vietnam, which saw net revenue up by 10.9% to AU$4.16 million (US$2.71 million) and property-level EBITDA by 9.1% to AU$2.52 million (US$1.64 million).
Group-wide net revenue was therefore down 15.6% to AU$8.47 million (US$5.52 million) and EBITDA by 10.2% to AU$3.68 million (US$2.40 million).
Donaco, which will hold a shareholder vote next week regarding a proposal for On Nut Road Limited to acquire 100% of the shares in the company it doesn’t already own, described the short-term outlook as uncertain.
“The operating environment for Donaco remains mixed in the near term,” it said. “Aristo continues to perform strongly, demonstrating stable revenue growth and improved visitation, with this trajectory expected to continue following a broader regional tourism recovery.
“Star Vegas is currently experiencing operational challenges due to the border dispute between Thailand and Cambodia.
“As the political landscape continues to evolve, Donaco is currently unable to determine the short-term outlook on the impacts of the border dispute on the Star Vegas operation. Management will continue to implement strategic cost management initiatives, actively monitoring developments and will provide further updates to shareholders as material changes occur.
“Donaco also notes the withdrawal of the Thai Government’s proposed Entertainment Complex Business Act following the cabinet reshuffle in late June 2025. While this development represents a positive regulatory outcome for Star Vegas’s operational framework, the immediate benefit remains constrained by the ongoing border dispute. Management continues to closely monitor the regulatory environment.”
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