Donaco set to reopen Cambodia’s Star Vegas as 1Q22 revenue plummets

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ASX-listed Donaco International Ltd says it is ready to resume operations at the Star Vegas casino, located in Poipet near the border with Thailand, pending final approval from the Cambodian government.

Star Vegas has been closed since April 27, 2021, with the company on Friday reporting a 91.7% year-over-year drop in net revenue to just AU$230,000 (US$162,000) for the three months. until March 31, 2022 – all from Aristo International Hotel in Vietnam. Adjusted EBITDA also fell to a loss of A$1.37 million (US$968,000).

However, the company said it still has a good outlook given the recent easing of border restrictions in Thailand, which should see the return of visits to Poipet in the coming weeks. In particular, he noted that Thailand has reopened to vaccinated tourists from May 1, 2022, with Star Vegas “ready to reopen as Thai borders continue to relax and conditions improve.”

Reiterating Donaco’s plans, Non-Executive Chairman Paul Porntat said: “The March quarter was another challenging period for Donaco. [however] we are ready to resume our Star Vegas casino as conditions improve and once we receive the green light from government authorities.

“Until that happens, we are exploring additional options to protect the balance sheet and ensure the business remains in a sustainable position until general conditions improve.

“We remain optimistic about Donaco’s long-term future. Vaccination rates have increased, leading to easing of borders and travel restrictions in areas where we operate. It will take some time for travel patterns to return to normal, and we are ready for the steady resumption of international tourism.

“We are also optimistic as the construction of Sapa Airport in Lao Cai represents a significant opportunity for Aristo to attract a significant number of new customers, with an airport capacity of 1.5 million passengers per year.

“We are almost at the end of this bumpy journey, and as always, I want to sincerely thank you, our shareholders, for your patience and loyalty.”

Donaco said it maintained a cash position of A$3.5 million (US$2.5 million) as of March 31, 2022, having recently repaid in full a loan of A$131.5 million (93 million US dollars) from its main lender, Mega Bank International Commercial Bank Co Ltd.

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