Donaco International Limited (Donaco or the Company) provides the following trading update for the quarter ended 31 March 2025 (March quarter).
The Company reported decreased revenue of A$10.03m, down from A$10.90m in the prior quarter. EBITDA for the March quarter also declined to A$4.10m (December quarter: A$5.77m). However, visitation numbers remained stable across the Group’s operations, following reduced border restrictions, government tourism campaigns, and a continued increase in regional tourism.
Donaco’s Star Vegas operation (Star Vegas), situated in Cambodia near the Thai border, delivered a net revenue of A$6.28m, down on the prior quarter (December quarter: A$7.17m) and property-level EBITDA of A$3.48m (December quarter: A$4.22m). Average daily visitation reached 928 players, marginally lower than the previous quarter (December quarter: 957 players).
Aristo International Hotel (Aristo), located in Vietnam near the Chinese border, performed steadily during the December quarter. It delivered a net revenue of A$3.75m, a slight increase on the prior quarter (December quarter: A$3.73m). Average daily visitation rose by 12% to 336 players (December quarter: 300 players). Aristo also recorded an in-line property-level EBITDA of A$2.31m (December quarter: A$2.31m).
Donaco ended the quarter with a strengthened cash position of A$39.98m (December quarter: A$36.26m).
Payments to related parties of the entity and their associates totalled A$202k, in the form of payments to Directors and their associates for salaries and contracted services.
On the result, Donaco’s Non-Executive Chairman, Mr Porntat Amatavivadhana, commented:
“Despite continuing to report robust visitation numbers and applying stringent financial management, the operating environment proved challenging in the March quarter.
Aristo continued to perform steadily during the quarter, reporting revenue growth and stable EBITDA. We also continued to see visitation numbers grow with higher levels of tourism in the region following reduced border restrictions and government tourism campaigns.
However, we continue to diligently monitor the Thai government's proposed Draft Entertainment Complex Business Act and evaluate its potential implications for our Star Vegas operations.
During the quarter, Donaco entered into a Scheme Implementation Deed with On Nut Road Limited for On Nut Road Limited’s proposed acquisition of the shares in Donaco that it does not already own. The Board has carefully considered the merits of the Scheme, and we believe On Nut Road Limited’s offer provides compelling value to Donaco shareholders, representing a 54.10% premium to the 90-day volume-weighted average share price.
The Board continues to unanimously recommend that Donaco shareholders vote in favour of the Scheme at the Scheme Meeting in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of Donaco shareholders.”
