In a report to the Australian Stock Exchange, Donaco International admitted that its financial results were very weak at the end of last year, in the wake of the bloodbath at its AGM.
“The performance of the Company’s businesses deteriorated following the Annual General Meeting in November 2019,” the note explained, “At DNA Star Vegas, a solid November month was followed by a very weak December. At the Aristo International Hotel, a weak November was followed by an extremely poor December.”
The note continued, “The Star Vegas business is feeling the impact of increased competition in the Poipet area, particularly from the new Galaxy casino, which opened in May 2019. In addition, illegal casinos in Bangkok were active in December, causing a decline in visitation to the whole Poipet strip in that month. The decline in casino visitation caused a reduction in main hall and slot machine revenues in December 2019.”
For the cumulative period from July to December 2019, EBITDA at Star Vegas (along the Cambodia-Thailand border) was THB225.5 million (about US$7.2 million), a fall of more than 28 percent year on year.
The firm’s Aristo International Hotel in Vietnam, however, had earnings of US$3.2 million during the same six-month period, which was up almost 70 percent year on year.