Donaco International Ltd has confirmed that CEO Paul Arbuckle will officially depart this week as the company looks to control costs while navigating the COVID-19 pandemic.
Arbuckle, who tendered his resignation following a boardroom coup last December but had until now been retained on a month-to-month basis, will step aside this Tuesday 4 August despite the ongoing recruitment process for his replacement. Donaco said it has “interviewed a number of quality candidates that are currently under consideration.”
The update formed part of Donaco’s latest results announcement, filed with the Australian Securities Exchange on Friday, which showed net revenues of just AU$900,000 for the three months to 30 June 2020 due to the closure of its casinos in Cambodia and Vietnam. Star Vegas, located in Poipet, was open for only a single day during the quarter before closing at 11.59pm on 1 April while Aristo International Hotel in northern Vietnam reopened on 8 May but with limited operations.
Donaco reported a Property Level EBITDA loss of US$900,000 at Star Vegas on revenue of just US$200,000, while Aristo International suffered a Property Level EBITDA loss of US$200,000 as average daily visitation plummeted to just 14 players from an average 572 players in 2Q19.
“The casino has been operating on a limited basis, as the border with China, where most of Aristo’s patrons originate from remains closed,” the company said.
“In response to the activity slowdown, management has implemented a number of cost-saving measures including a reduction in total staff headcount and deferring various capital expenditure projects.“
As previously reported by IAG, Donaco has set a monthly target cash burn rate of between US$800,000 and US$900,000 for the duration of the pandemic. In July, the company completed an AU$14.1 million capital raising exercise via an entitlement offer.