Casino operator Donaco International has reported a turnaround in its fiscal first-half net profit after tax, marking a notable improvement from the prior-year period.
According to results released to the Australian Securities Exchange on Wednesday, Donaco recorded NPAT of AU$5.7 million ($3.7 million) for the interim period ending December 31st. This compares favorably to the loss of AU$36.74 million ($23.87 million) incurred in the same period last year, with no dividends having been paid during the reporting period.
The company experienced robust growth in group revenue, which surged by 96 percent year-on-year to reach AU$19.45 million ($12.63 million), and group EBITDA also increased significantly, reaching AU$10.79 million ($7 million).
Donaco operates the Aristo International Hotel in Lao Cai, Vietnam, near the China border, and the DNA Star Vegas resort located in Poipet, Cambodia, near the border with Thailand.
“Donaco’s success in the first half of the year is a testament to our effective turnaround strategy, bolstered by operational execution and an influx in tourism and visitations across our venues,” said Donaco’s non-executive chairman, Porntat Amatavivadhana.
“Our commitment to improved performance and operational management resulted in increased growth, contributing to a robust balance sheet across our business.
“The positive impact of the recently launched Cambodian Government campaign to attract Thai visitors has significantly benefited Star Vegas. While Aristo commenced a campaign to attract VIP visitors, which also led to increased revenue.
“Following an outstanding 1H FY24, Donaco remains well-placed for sustained growth in the second half of this financial year. Our commitment to executing our strategy, coupled with leveraging international tourism, positions Donaco to deliver solid results,” noted the executive.
DNA Star Vegas achieved net gaming revenue of AU$13.36 million ($8.68 million) and EBITDA of AU$8.72 million ($5.66 million), while Aristo reported net revenue of AU$6.09 million ($3.96 million) and EBITDA of AU$3.47 million ($2.25 million). As of December 31st, the company reported a “strong” cash position, holding AU$25.12 million ($16.32 million).
