Southeast Asian casino operator Donaco International Limited has reported group-wide EBITDA of AU$1.8 million (US$1.3 million) for the three months to 31 December 2022, boosted by the return to full capacity of Star Vegas in Poipet, Cambodia.
The December result was improved from EBITDA of AU$1.5 million (US$1.06 million) in 3Q22 and reversed an AU$1.24 million (US$874,000) loss during the same period in 2021. Group-wide revenue in Q4 reached AU$5.3 million (US$3.7 million), up from AU$4.5 million (US$3.2 million) in Q3 and from AU$380,000 (US$268,000) in 4Q21.
At Star Vegas, Property level EBITDA reached AU$2.7 million (US$1.9 million) for the quarter on a 24.9% sequential increase in revenue to AU$5.1 million (US$3.6 million). However, Aristo International Hotel, located in northern Vietnam on the border with China, continued to struggle with revenue of just AU$190,000 (US$134,000) and an EBITDA loss of AU$270,000 (US$190,000).
“Our December quarter was encouraging with steady contribution from DNA Star Vegas following the increase in international travel from neighbouring countries,” said Donaco’s Non-Executive Chairman, Porntat Amatavivadhana.
“Promisingly, it seems we are coming out from the effects of the COVID-19 pandemic with international travel set to continuously improve.
“Momentum is expected to grow as mainland China recently reopened its borders, and this presents a substantial growth potential for us as historically a large portion of our clientele came from China.
“The long-term future for our Aristo operation in Vietnam also looks bright. The construction of Sapa airport in Lao Cai, the region where Aristo is located, in conjunction with the Lao Cai Ministry of Culture, Sports and Tourism recently recognizing Aristo as the only 5-star hotel in the region, is a key way for our casino to attract a significant number of new customers.
“Backed by a robust balance sheet position, our two casinos have a solid operational strategy, and I am incredibly optimistic about the future path for Donaco.”
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