Cambodian and Vietnamese casino operator Donaco International has reported steadily increasing earnings in 1Q24, almost fully reaching pre-COVID operational levels, as stated in the company’s quarterly report.
Donaco notes that its visitation numbers have now stabilized, reaching levels consistent with the previous quarter (4Q23), with tourism in Cambodia and Vietnam returning to pre-COVID levels.
The group recorded strong results with group net revenue of AU$12.66 million ($8.2 million) and EBITDA of AU$8.39 million ($5.5 million), a 66 percent increase over the last quarter.
The quarterly report mentions that Donaco’s DNA Star Vegas (Star Vegas) operation, situated on the Cambodia-Thailand border, recorded net revenue of AU$8.82 million ($5.7 million) and property-level EBITDA of AU$6.63 million ($4.3 million), representing 83.7 percent growth.
‘Star Vegas benefited from a membership loyalty program implemented in January 2024,’ it notes.
Donaco’s Vietnam operation, Aristo International Hotel (Aristo), saw an uptick in revenue and EBITDA flowing from stabilized tourism, primarily from China. Aristo recorded net revenue of AU$3.84 million ($2.5 million), representing a 6.4 percent growth from the previous quarter of AU$3.61 million.
Donaco has maintained its focus on stringent financial management and ended the period with a robust cash position of $28.99 million ($18.9 million), a 15.4 percent increase from 4Q23’s AU$25.12 million ($16.3 million).
“Donaco’s operational execution and increase in quality player visitation fueled strong growth in our business in the March Quarter,” commented Donaco’s Non-Executive Chairman, Porntat Amatavivadhana.
The company has a positive outlook due to the continuous improvement across all segments. Additionally, it mentions that the Vietnamese Government is making continued progress on the development of the new Sapa airport in Lao Cai, situated near Aristo. With the airport scheduled to open in 2025, it is estimated to bring over 1.5 million additional visitors annually. The airport’s opening is expected to drive a substantial increase in visitation for Donaco post-2025.
