Donaco first quarter results in line with 18Q1

Australia-listed Donaco International saw its 19Q1 results mostly in line with the prior year period, driven by higher group revenues and tighter management of corporate costs.

Net revenue for the March 2019 quarter reached THB 439.6 million, around 0.6 percent over the prior year period. Donaco said that higher gross gaming revenue from table games was offset by higher junket commissions and profit sharing costs, and lower slot machine revenue.

VIP turnover reached THB20.3 billion, increasing 9.6 percent year-on-year – driven by the addition of new junket groups.

Main hall turnover almost tripled to THB 64.6 million, due mainly to the introduction of new mass-market tour groups, primarily from Thailand.

Operating expenses however also increased in the quarter, rising to THB242.1 million, compared to THB172.5 million in 18Q1. Donaco said this was due to higher legal costs as a result of a dispute with its Thai vendor, higher staff costs, and the impact of competition in the Poipet area.

Donaco said it is currently relaunching its online gaming business with a new software platform and new marketing partners and is expected to go live with this in May 2019.