Southeast Asian casino operator Donaco International Ltd has reported an EBITDA loss of AU$530,000 in the three months to 30 June 2021, falling back into the red as a result of the closure of its flagship casino Star Vegas in Poipet, Cambodia, from 27 April.
Having returned to profit in the March quarter, Donaco recorded revenue of just AU$1.46 million in Q2 with AU$1.1 million from Star Vegas – down from AU$2.5 million in the March quarter.
Aristo International Vietnam reported revenue of just AU$360,000, with Donaco noting that the property, located near the border with China, has been operating on a limited basis since May 2020 due to the border remaining closed.
With both casinos currently loss-making, Donaco said it has focused instead on cost control measures and mitigation activities, resulting in the reduction in operating expenses to AU$1.3 million for the quarter.
“This hasn’t been an easy period for Donaco,” said non-executive Chairman Paul Porntat.
“The pandemic has impacted the industry as a whole and society as a whole as a direct result of restrictions, and prioritising public health and the safety of our staff and visitors has remained a number one priority.
“Following the order from the Cambodian local government for the closure of casinos in the region to prevent community outbreak, including Star Vegas, we have continued to focus on protecting our balance sheet, and we’ve taken rigorous measures to protect the business by keeping our costs down and preserving our cash.
“Nonetheless, we are ready to bounce back once conditions improve as vaccinations are rolled out. As recently demonstrated, Donaco made a profit during the December quarter which was a remarkable achievement in the current circumstances, and this gives us confidence in our capabilities to bounce back once the situation recovers.
“Vaccinations will continue to be administered across Southeast Asia during the second half of the year to curb the virus and its new variant. In the meantime, we are well-equipped to meet the challenges we expect to face in the short term and we are ready to move forward once external conditions stabilise.”
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