Donaco International released a statement on Wednesday confirming that its casino operations at the Aristo International Hotel in Lao Cai, Vietnam, have resumed.
The Vietnamese government requested the closure on April 1 and lifted the orders on May 8, paving the way to the return to business.
“Aristo has now officially reopened, but will operate on a limited basis, as the border with China
where most of Aristo’s patrons originate from remains closed,” the company statement observed.”
They added, “Donaco remains committed to monitoring the dynamic Covid-19 situation closely to ensure the health and wellbeing of Aristo’s staff and visitors.”
In recent years two companies, Donaco International and Silver Heritage, listed on the Australian Securities Exchange with the high ambition to crack the Asian casino market. However, as the new decade begins, both of these firms face deep crises. To what extent did they fail in the face of common challenges?
From India to Australia, casinos across the Asia Pacific region have closed their doors in response to efforts to combat the spread of the coronavirus, with little to no visibility at present as to the evolution of the situation.
The Coronavirus, now renamed as Covid-19, has devastated the near-term outlook for Asia’s casino operators, though analysts still expect demand to snap back sharply once the outbreak is under control. The big question is when that might be.
Australia-listed Donaco International is starting 2021 on a positive note, finally settling its legal issues and saying it is now positioned for future growth.
Donaco International said it has now finalized the settlement of a dispute surrounding the Star Vegas casino in Cambodia and the business has returned EBITDA positive.
Donaco International said it has secured an approval from its lender Mega Bank on the settlement of all legal cases related to the Thai vendors of its Star Vegas property in Cambodia. It says it is on track to repay all outstanding debt in 2021.
Donaco International has reported that it has returned to positive EBITDA for October and November, and seems to be on course for December as well. This is framed as being part of a trend of overcoming the Covid-19 pandemic’s impact.
Donaco International continues to feel the impact from border closures between Cambodia and Thailand and Vietnam and China in the latest quarter, though says its monthly cash burn remains within its range.
Donaco International said its Star Vegas property in Cambodia reopened on Friday, though on a limited basis to test operational systems.
Donaco International says Lee Bug Huy, one of the businessmen who sold the Star Vegas casino in Cambodia to the Australian operator, will be its new CEO.