Australian-listed Donaco International Ltd says it returned to group-wide positive EBITDA in October and November, driven by “strategic initiatives” and cost-cutting measures implemented at its two Southeast Asian casinos.
In a business update filed early Friday, Donaco revealed EBITDA of US$540,000 in October and US$800,000 in November, adding that the trend has continued into December with its flagship Cambodian casino, Star Vegas in Poipet, no longer making a loss.
The company had previously reported a Group EBITDA loss of AU$2.7 million (US$1.9 million) in the three months to 30 September.
“The main drivers of this growth are the strategic initiatives executed by the new Board and executive team to weather the impacts from the COVID-19 pandemic, alongside the continued cost control strategy in place,” Donaco said.
“Strategic initiatives include a shift in customer targeting, with a renewed focus on attracting clientele from the local region to Star Vegas, to in turn reduce the company’s international staff expenses and provide a solid platform for growth.”
Donaco also revealed that it expects to pay off its remaining US$7.8 million in debt in 2021, having recently made a US$5 million payment to its main lender, Mega International Commercial Bank Co Ltd, which had been deferred from June. The company continues to work with Mega Bank on approval of a settlement agreement with the Thai vendors of Star Vegas that would put an end to various legal proceedings, it said.
Those same vendors have recently taken greater control of Donaco by way of an entitlement offer that saw them increase their stake to 42.08%, and a subsequent boardroom makeover that included one of the vendors, Lee Bug Huy, named Donaco’s new CEO.