Southeast Asian casino operator Donaco International Ltd has reported a group-wide EBITDA loss of AU$760,000 (US$530,000) in the three months to 30 June 2022 – a quarter still heavily impacted by the COVID-19 pandemic.
Although the loss was narrowed from a AU$1.37 million (US$956,000) EBITDA loss in the March quarter, net revenue remained subdued at just AU$1.07 million (US$747,000) due its Cambodia border casino, Star Vegas, only reopening on 18 June 2022. Donaco said that operations are continuing on a limited scale at this stage, with the company positioned to “progressively advance towards full scale activities over the coming months” now that the border with Thailand is open.
Its other casino, Aristo International – located in Vietnam near the border with China – has also faced minimal business due to China’s ongoing zero-COVID policy. As a result, net revenue at Aristo saw net revenue of just AU$200,000 (US$140,000) compared with AU$870,000 (US$607,000) at Star Vegas.
Despite the sluggish quarter, non-executive Chairman Porntat Amatavivadhana said Donaco was optimistic about its recovery.
“The highlight of the quarter was the reopening of Star Vegas with the goal to return to full-scale operations as conditions improve,” he said.
“It will take some time before activities return to how they were before, but these external factors are a huge step forward.
“With our business slowly resuming and with [a AU$5 million (US$3.5 million) loan facility] under our belt, we are in a stable position to protect the balance sheet. We are optimistic about Donaco’s future as vaccination rates and international travel patterns continue to improve.”