Operator News
Cambodia bounceback helps boost Donaco’s revenues by 44 per cent
By Phil - 26 April 2024
Donaco recorded a huge 66 per cent increase in its quarterly EBIDTA and a 30 per cent revenue increase with Star Vegas’ revenues in Cambodia up 44 per cent and revenue at Aristo in Vietnam up 6.4 per cent.
The company’s visitation numbers have now stabilised, reaching levels consistent with the previous quarter, with tourism in Cambodia and Vietnam returning to pre-COVID levels.
The Group recorded strong results with group net revenue of A$12.66m (December Quarter: A$9.73m) and EBITDA of A$8.39m, a 66 per cent increase over the December Quarter of A$5.06m. Donaco’s DNA Star Vegas operation, situated on the Cambodia-Thailand border, recorded net revenue of A$8.82m (December Quarter: A$6.12m), and property-level EBITDA of A$6.63m which represents an 83.7 per cent growth. Star Vegas benefitted from a membership loyalty program implemented in January 2024. Donaco’s Vietnam operation, Aristo International Hotel (Aristo), saw an uptick in revenue and EBITDA flowing from stabilised tourism, primarily from China. Aristo recorded net revenue of A$3.84m, representing a 6.4 per cent growth from the December Quarter of A$3.61m.
Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana, commented: “Donaco’s operational execution and increase in quality player visitation fueled strong growth in our business in the March Quarter. Star Vegas continued to outperform, delivering considerable growth across property-level EBITDA and net revenue. The operation also saw an improvement in daily visitation and a reduction in operating expenses, which is a testament to our turnaround strategy. The Cambodian Government’s successful tourism campaign resulted in improved visitation numbers at Star Vegas. Similar positive results were seen in Vietnam, with our Aristo operation reporting consistent visitation in line with the December Quarter. Meanwhile, Aristo maintained stable financial metrics and moderate improvements across revenue, property level EBITDA and operating expenses, highlighting the asset’s operational efficiency. Looking ahead, we are confident in Donaco’s ability to deliver continued solid results, based on our focus on operational efficiencies and the positive tourism trends in the region.”
Donaco has experienced continued growth over the March Quarter, with the Company almost fully reaching pre-COVID operational levels. The strong performance is bolstered by a robust balance sheet and experienced management team, positioning Donaco for continued growth in the coming quarter. Visitation numbers have stabilised across Donaco’s operations. However, the Company anticipates a further uptick as local governments ramp up their tourism efforts in the regions. Adding to the positive outlook, 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 uplift in visitation for Donaco post-2025.
