Southeast Asian casino investor Donaco International Ltd reported group-wide revenue of AU$12.7 million (US$8.3 million) in the three months to 31 March 2024, representing a 30.1% increase over the December quarter on improved business volumes at its Cambodian and Vietnamese casinos.
EBITDA of AU$8.4 million (US$5.5 million) was also 65.8% higher than in the prior quarter.
Star Vegas, located in Poipet, Cambodia near the border with Thailand, was the primary contributor with net revenue of AU$8.8 million (US$5.7 million) – up 44.1% – and property-level EBITDA of AU$6.6 million (US$4.3 million), up 82.8%. Donaco said Star Vegas benefitted from a membership loyalty program implemented in January 2024.
In Vietnam, Aristo International Hotel – located near the border with mainland China – saw net revenue grow by 6.4% to AU$3.8 million (US$2.5 million) with property-level EBITDA very slightly higher compared with the December quarter at AU$2.5 million (US$1.6 million).
The company added that it continues to focus on “stringent financial management” and ended the period with a cash position of AU$29.0 million (US$18.8 million), a 15.4% increase from the December Quarter’s AU$25.1 million (US$16.3 million).
“Donaco’s operational execution and increase in quality player visitation fueled strong growth in our business in the March Quarter,” said Non-Executive Chairman, Porntat Amatavivadhana.
“Star Vegas continued to outperform, delivering considerable growth across property-level EBITDA and net revenue. The operation also saw an improvement in daily visitation and a reduction in operating expenses, which is a testament to our turnaround strategy.
The Cambodian Government’s successful tourism campaign resulted in improved visitation numbers at Star Vegas. Similar positive results were seen in Vietnam, with our Aristo operation reporting consistent visitation in line with the December Quarter. Meanwhile, Aristo maintained stable financial metrics and moderate improvements across revenue, property level EBITDA and operating expenses, highlighting the asset’s operational efficiency.
“Looking ahead, we are confident in Donaco’s ability to deliver continued solid results, based on our focus on operational efficiencies and the positive tourism trends in the region.”
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