Donaco International reports steady growth in first half of FY2025

Donaco International Limited has released its financial results for the six months ending December 31, 2024 (1H25), showing consistent growth in revenue and earnings.

The company recorded a group net revenue of AU$21.83 million ($14.19 million), up 12.2 percent from AU$19.45 million ($12.64 million) in the same period last year (1H FY24), and an EBITDA of AU$11.39 million ($7.40 million), a 17 percent increase from AU$9.73 million ($6.32 million).

Net profit after tax rose to AU$7.77 million ($5.05 million), reflecting a 36.3 percent improvement over the previous year’s AU$5.70 million ($3.71 million).

The company operates two key properties: DNA Star Vegas on the Cambodia-Thailand border and Aristo International Hotel near Vietnam’s border with China. DNA Star Vegas reported net revenue of AU$14.08 million ($9.15 million), a slight increase from AU$13.36 million ($8.68 million) in 1H FY24, with EBITDA at AU$8.10 million ($5.27 million), up from AU$7.66 million ($4.98 million).

The property saw a rise in average daily visitation by 949 players, attributed to a membership loyalty program launched in January 2024 and growing tourism activity.

Aristo International Hotel posted stronger gains, with net revenue reaching AU$7.76 million ($5.04 million), a 27.3 percent jump from AU$6.09 million ($3.96 million) in 1H FY24. Its EBITDA climbed to AU$4.85 million ($3.15 million), a 39.9 percent increase from AU$3.47 million ($2.26 million), driven by improved operational performance and increased visitor traffic.

Donaco’s cash reserves stood at AU$36.26 million ($23.57 million) as of December 31, 2024, up 44.3 percent from AU$25.12 million ($16.33 million) a year earlier, bolstering its financial position.

The company held its Annual General Meeting on November 22nd, 2024, in Sydney, where all resolutions were passed via poll. Donaco’s Non-Executive Chairman, Porntat Amatavivadhana, noted that the results reflect effective financial management and a strategic turnaround initiated over a year ago. He highlighted Aristo’s standout performance and anticipates further benefits from the upcoming Sapa airport opening near the property.

However, Donaco faces potential challenges ahead. Thailand’s proposed Draft Entertainment Complex Business Act, which could legalize casinos and is under public consultation until March 1st, 2025, may affect DNA Star Vegas’ market.

Additionally, Aristo is involved in an ongoing tax dispute with Vietnam’s General Department of Taxation over unredeemed gaming chips, with a potential liability of approximately AU$8.86 million ($5.76 million). Following dialogue meetings in January 2025, the case awaits a public trial, with an outcome still pending.

Looking forward, Donaco expects to maintain financial stability in the second half of FY25, supported by its cash reserves and operational momentum. The company plans to monitor regulatory developments in Thailand and provide updates on the Vietnam tax appeal as proceedings unfold.