Since the reopening of the Star Vegas Resort and Club in Cambodia in late September, and the Aristo International Hotel in Vietnam, Donaco International has seen two months of positive EBITDA for October and November, of US$0.54m and USD$0.8m respectively for the overall group.
The growing trend has continued into December and the Company is extremely encouraged that since its limited reopening Star Vegas is no longer making a loss. The main drivers of this growth are the strategic initiatives executed by the new Board and Executive team to weather the impacts from the COVID-19 pandemic, alongside the continued cost control strategy in place. Strategic initiatives include a shift in customer targeting, with a renewed focus on attracting clientele from the local region to Star Vegas, to in turn reduce the Company’s international staff expenses and provide a solid platform for growth.
In tandem with these initiatives, the gradual easing of COVID-19 restrictions in the areas the Company operates in has improved the position of the business. The casinos, which are still running on a limited basis, are ready to resume to full operations as the situation ameliorates. Donaco’s strategy for CY21 will build on these pragmatic initiatives, underpinned by a strengthened balance sheet and cost control strategy. Donaco is also in discussions with Mega Bank to secure the waiver for the successful settlement of all legal cases with the Thai Vendor as part of the provisions of a Facility Agreement with the lender. The Company remains
confident in securing this approval.
Donaco continues to pay down its debt with Mega Bank which as at 11 December 2020 decreased by US$5m. The outstanding debt of USD$7.8m is a notable reduction from the initially borrowed amount of US$100m, and the company anticipates repaying the remaining debt in FY21. The company is also proactively exploring alternative options to access the gaming sector and will update the market on developments in due course.