Operator News
Cambodia – Donaco rebuilding Star Vegas’ revenues
By Phil - 17 April 2018
Donaco International has said that its Star Vegas business in Cambodia continues to rebuild, recovering from the ‘damaging effect of the Thai vendor’s breaches of contract and the resulting illegal competition in the Poipet area.’
Management has been successful in signing up a number of new VIP junkets to replace those that left the property last year. Across the March 2018 quarter, average daily visitation increased by 30 per cent to 4,462 casino visitors per day, compared to 3,426 visitors per day last year. February month saw average daily visitation at 4,630 per day, an increase of 38 per cent compared to 3,356 per day last year.
Total rolling chip turnover for the March quarter was THB18.52bn, still 25 per cent below last year’s total of THB24.78bn. However this was a substantial improvement on the 64% decline seen in the December 2017 half year.
With a major new VIP junket commencing operations on 9 February 2018, total VIP turnover in the month of February 2018 was THB8.56bn, an increase of 13 per cent compared to THB7.55bn last year. The VIP win rate for the quarter was 2.8 per cent close to the theoretical win rate of 2.85 per cent. This was lower than last year’s very high VIP win rate of 3.83%. Operating expenses remain lower under Donaco’s management than under the former Thai vendor, totalling THB172.5m for the quarter, a decrease of 13 per cent compared to THB197.6m last year.
Due primarily to the differences in VIP turnover and win rate, total EBITDA for the business across the March quarter was USD8.4m, a decrease of 48 per cent compared to USD16.2m last year. For the financial year to date, EBITDA of THB749.29m is down by 45 per cent, compared to THB1.369m last year.
The company’s Aristo International Hotel Casino in Vietnam experienced improved visitation during the quarter was two per cent higher than last year, at 413 people per day compared to 404 last year. Rolling chip turnover was also higher, reaching RMB2,494.7m, an increase of one per cent compared to RMB2,472.8m last year.
