Southeast Asian casino operator Donaco International Ltd has reported a near 10-fold increase in revenues for the year ended 30 June 2023 of AU$24.33 million, up from just AU$2.4 million a year earlier thanks to the full reopening of its Cambodian and Vietnam casinos.
The company also returned to an EBITDA profit of AU$9.61 million versus a FY22 loss of AU$4.4 million, although it reported a statutory net loss of AU$36.7 million after recognizing a non-cash asset impairment charge of AU$22.2 million at Aristo Hotel in Vietnam and AU$4.5 million at Star Vegas in Poipet, Cambodia due to COVID-19 and a “higher interest rates environment”.
Star Vegas, which reopened in June 2022, saw its revenues reach AU$19.9 million, up from just AU$900,000 a year earlier, with Adjusted EBITDA of AU$10.82 million.
Aristo International Hotel in Vietnam, which benefited from the reopening of mainland China’s borders in January, delivered FY23 revenue of AU$4.4 million and EBITDA of AU$1.53 million.
Donaco said the property has enjoyed greater traction in VIP visitors as the year has progressed after reducing the monthly minimum turnover required to qualify as an active junket from RMB6 million to RMB3 million.
Aristo is “performing well and is on track to reach full operational capacity in the current quarter,” it added.
“FY23 was a turnaround year for Donaco as we came out from the effects of the pandemic,” said Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana.
“I am proud of our management team and the whole staff for navigating through the year. Now that both Star Vegas and Aristo are returning to full scale operations, our outlook is promising, and we’re targeting future earnings growth.
“The travel flows between the Thailand/Cambodia and Vietnam/China borders are expected to continue to ramp-up and benefit our operations.
“Backed by a healthy balance sheet and solid strategy, we are well placed to capitalise on the emerging opportunities ahead and deliver sustainable growth for our shareholders.”