ASX-listed Southeast Asian casino operator Donaco International said its operational turnaround strategy remained on track throughout the June 2023 quarter, despite bad luck at Star Vegas in Cambodia ultimately impacting its bottom line.
Group-wide revenue in 2Q23 reached AU$6.88 million (US$4.61 million) – up from AU$1.1 million a year earlier although lower than the AU$7.55 million (US$5.05 million) recorded in Q1. Likewise, EBITDA of AU$2.40 million (US$1.61 million) reversed an AU$800,000 (US$536,000) loss in 2Q22 but was lower than the AU$4.07 million (US$2.72 million) in the March 2023 quarter.
Donaco said Star Vegas’ EBITDA result was hurt by “an anomalous VIP win rate and non-recurring audit adjustments.”
Specifically, Donaco doubled its VIP turnover quarter-on-quarter but suffered a rare losing quarter for the VIP segment with a win rate of -1.06%, versus win rates of 4.11% in 2Q22 and 4.09% in 1Q23.
“This in conjunction with a renewed focus on maximising operational efficiencies moving forward has led Donaco to anticipate stronger earnings margins in the coming quarters,” the company added.
At Aristo Hotel in Vietnam, performance was vastly improved following the recent opening of the nearby border with mainland China. Rolling chip turnover of AU$323 million (US$216 million) swamped the AU$3.20 million (US$2.14 million) in turnover a year earlier and Q1’s turnover of AU$88.2 million (US$59.1 million).
As a result, net revenue more than doubled sequentially to AU$2.51 million (US$1.68 million) with EBITDA of AU$1.31 million (US$877,000).
“The June quarter marked an important step for Donaco as we reach a return to full-scale operations,” said Non-Executive Chairman, Porntat Amatavivadhana.
“Pleasingly, the outlook for our business remains promising. Travel inflows from China to Vietnam are expected to continue to ramp-up and the Cambodian government recently launched a major tourism campaign to attract Thai visitors, which is highly encouraging for our Star Vegas casino.
“Backed by a healthy balance sheet and a clear line of sight towards enhanced operational efficiencies, we are well placed to capitalise on the emerging opportunities ahead and deliver long-term value for our shareholders.”