Donaco International Ltd, a prominent investor in Southeast Asian casinos, has reported robust financial results for the first quarter of 2024. With a focus on operational excellence and strategic initiatives, the company experienced significant growth in revenue and EBITDA across its properties in Cambodia and Vietnam.
Revenue and EBITDA Performance:
In Q1 2024, Donaco International achieved group-wide revenue of AU$12.7 million, marking a notable increase of 30.1% compared to the previous quarter. The stellar performance was bolstered by improved business volumes at its casinos in Cambodia and Vietnam. Additionally, the company reported a substantial surge in EBITDA, reaching AU$8.4 million, reflecting a remarkable 65.8% increase from the prior quarter.
Star Vegas Casino:
Star Vegas, situated in Poipet, Cambodia, emerged as the primary revenue driver for Donaco International during the period. With net revenue soaring to AU$8.8 million, representing a significant growth of 44.1%, and property-level EBITDA reaching AU$6.6 million, up by an impressive 82.8%, Star Vegas showcased exceptional performance. The implementation of a membership loyalty program in January 2024 contributed to this success, fostering increased customer loyalty and engagement.
Aristo International Hotel:
In Vietnam, Donaco’s Aristo International Hotel, located near the Chinese border, reported a respectable growth trajectory. Net revenue saw a modest increase of 6.4% to AU$3.8 million, while property-level EBITDA remained relatively stable compared to the previous quarter, standing at AU$2.5 million. Despite facing challenges, Aristo maintained consistent visitation rates and demonstrated operational efficiency, underscored by moderate improvements in revenue and operating expenses.
Financial Management and Liquidity Position:
Donaco International remains steadfast in its commitment to stringent financial management practices. The company closed the quarter with a robust cash position of AU$29.0 million, reflecting a commendable 15.4% increase from the previous quarter. This financial strength provides Donaco with a solid foundation to navigate uncertainties and pursue strategic opportunities in the evolving market landscape.
Chairman’s Perspective:
Non-Executive Chairman, Porntat Amatavivadhana, expressed satisfaction with Donaco’s operational performance and growth trajectory in the first quarter of 2024. He attributed the success to the company’s turnaround strategy, emphasizing the significant improvements in daily visitation, revenue, and operational expenses at Star Vegas. Furthermore, he highlighted the positive impact of the Cambodian Government’s tourism campaign on visitation numbers, indicating promising prospects for the future.
Outlook and Future Prospects:
Looking ahead, Donaco International remains optimistic about its ability to sustain solid results and capitalize on favorable tourism trends in the region. With a continued focus on operational efficiencies and customer-centric initiatives, the company is well-positioned to drive growth and deliver value to its stakeholders. As the tourism industry continues to rebound and travel restrictions ease, Donaco anticipates further expansion opportunities and enhanced performance across its casino properties.
Donaco International’s performance in the first quarter of 2024 underscores its resilience and ability to adapt to dynamic market conditions. Through effective operational management, strategic investments, and a customer-centric approach, the company has achieved significant revenue growth and strengthened its financial position. With a promising outlook for the future, Donaco remains committed to driving sustainable growth and maximizing shareholder value in the Southeast Asian casino market.