Donaco International Limited (Donaco or Company) provides the following trading update for the quarter ended 30 September 2024 (September Quarter).
The September Quarter represented stable earnings and continued financial management across Donaco’s operations. The Group recorded net revenue of A$10.25 million (June Quarter: A$10.81m) and EBITDA of A$5.55 million (June Quarter: A$6.34m). This was slightly lower compared to the June Quarter as a result of DNA Star Vegas’ (Star Vegas) lower than expected performance, mainly due to the registration fees of new slot machines in September 2024 of approximately A$0.37 million.
Donaco’s Star Vegas operation (DNA Star Vegas), situated on the Cambodia-Thailand border, delivered net revenue of A$6.30 million (June Quarter: A$6.84m) and property-level EBITDA of A$3.83 million (June Quarter: A$4.65m). Star Vegas’ average daily visitation remained stable at 941 players, driven by the Company’s membership loyalty program launched in January 2024.
Aristo International Hotel (Aristo), located in Vietnam, maintained stable revenue in the September Quarter, with net revenue of A$3.95 million, in-line with the June Quarter’s A$3.97 million. Average daily visitation slightly increased to 306 players (June Quarter: 291 players), and the Group recorded a slightly higher property-level EBITDA of A$2.52 million (June Quarter: A$2.47m).
Donaco ended the September Quarter with an increased cash position of A$33.02 million (June Quarter: A$29.30m).
Payments to related parties of the entity and their associates totalled A$195K, in the form of payments to Directors and their associates for salaries and contracted services.
Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana, commented:
“In the September Quarter, our two operations, DNA Star Vegas and Aristo, performed in line with the prior quarter, including steady daily visitation numbers. Looking specifically at Star Vegas, we were expecting a higher September Quarter for the asset, which was impacted by the registration fees from new slot machines, equivalent to A$0.37 million.
Our cash position remains strong and increased to A$33.02 million. We remain committed to executing our strategy as we navigate Southeast Asia's evolving gaming industry. As part of this, we are evaluating potential disruptors, such as the proposed Integrated Entertainment Business Act in Thailand, a bill to allow casinos to operate legally within entertainment complexes in the country1, and the separate Aristo tax matter.”
