Donaco to preserve liquidity as casinos remain closed

Donaco International said its March quarter has been significantly impacted by border and casino closures, as a result of the COVID-19 pandemic. 

The group recorded a negative EBITDA of A$1.1 million for the March quarter, compared to A$10.8 million in 2019.

The company also is reporting negative cash flow from operations of A$5.1 million and net debt increased to A$60.8 million from A$50.9 million in the prior-year period. 

Donaco’s Star Vegas and Aristo Hotel have been closed since April 1, 2020 due to government orders in both Cambodia and Vietnam.

However, the company said that Aristo may open sometime in May 2020, depending on a decision from the Vietnamese government. 

Commenting on the period, chairman Mel Ashton said: “This was a tough quarter for Donaco with both of our casinos impacted by COVID-19 with considerably less gaming activity occurring. Now that our casinos are temporarily closed, the preservation of liquidity is a key priority. We will continue to make sure we have adequate measures in place and remain in a healthy financial position for when operations restart.” 

The company said it is undertaking measures to reduce costs, including headcount, to preserve liquidity.