Australia-listed Donaco International Limited announced that it saw a slight drop in revenue during the quarter ended March 31st, despite stable visitation numbers across its properties.
The group operates DNA Star Vegas in Poipet, Cambodia and Aristo International Hotel in Lao Cai, Vietnam.
Star Vegas generated some AU$6.2 million ($4 million) in net revenue, down from AU$7.17 million ($4.6 million) in the quarter ending in December, while property EBITDA also fell to AU$3.48 million ($2.24 million) from AU$4.22 million ($2.71 million) in 4Q24. Average daily visitation was also slightly down to 928 players.
Looking to the Vietnam operations, Aristo International Hotel saw a slight increase in net revenue, to AU$3.75 million ($2.4 million), up from AU$3.73 million in 4Q24. Average daily visitation increased to 336 players, from 300 in the prior quarter, while property EBITDA totaled AU$2.31 million ($1.5 million), flat sequentially.
Speaking of the results, Donaco’s Non-Executive Chairman Porntat Amatavivadhana noted that “Despite continuing to report robust visitation numbers and applying stringent financial management, the operating environment proved challenging in the March quarter. Aristo continued to perform steadily during the quarter, reporting revenue growth and stable EBITDA. We also continued to see visitation numbers grow with higher levels of tourism in the region following reduced border restrictions and government tourism campaigns.”
However, the group is conscious of the potential threat from legal casinos in Thailand (if and when it materializes), noting that it will “evaluate its potential implications for our Star Vegas operations”.
Furthermore, the group has recommended shareholders to sign off on the sale of its shares to On Nut Road, a Hong Kong-licensed fund manager with more than $2 billion in assets under management, noting that “The Board has carefully considered the merits of the Scheme, and we believe On Nut Road Limited’s offer provides compelling value to Donaco shareholders, representing a 54.10 percent premium to the 90-day volume-weighted average share price”.
The move would place Donace purely under On Nut Road, representing 100 percent of the company’s shares after the buyout – for approximately AU$55.59 million ($35.2 million).
