The Australian-catalogued South Eastern Asian casino gaming operator, Donaco International Limited, has faced an 80.7 percent decline in revenue to AU$10.32 million from AU$53.49 million. This resulted from long-lasting procedural closures of its casino’s operation in the countries of Cambodia and Vietnam during the financial year of 2021 on 30th June.
An Australian Donaco International Limited operator reported that the second and third waves of Covid-19 cases in Cambodia and Thailand negatively impacted their revenues and EBITDA.
Financial Impact of Covid-19 on the Donaco International Limited Company
Donaco International Limited managed to restrict costs to control the operating expenses. It managed to maintain the industry’s EBITDA to deprivation of AU$70,000 (US$52,274). This accounts for the company’s negative earnings before the group receives interest, depreciation rate, is taxed, and other installment fees. However, after taxing the gross profit, a statutory net profit remained at AU$25.18 million for 2021.
Donaco’s Star Vegas casino industry remains closed until further notice due to a succession of Covid-19 cases. Other casinos in Poipet have followed the same path.
Following the report done by the Donaco International Limited company, the net revenue received in the first quarter of the fiscal year 2021 was down from AU$ 6 million in the previous quarter to AU$ 2.8million currently. EBITDA had AU$ 0.29million in the first quarter. The Star Vegas recorded an average of 290 gamers in a day. This was down by 88 percent from the fiscal year 2020 when there were 2.584 gamers in a day.
It has been quite challenging for Donaco International Limited company within the past twelve (12) months. Star Vegas reopened on 25th September 2020 at limited capacity to enforce COVID-19 protocols. However, the company closed for the second time on 27th April 2021 following a mandatory order from the Government of Cambodia.
Paul Porntat Amatavivadhana, Non-Executive Chairman of Donaco International Limited Remarks
The Aristo International Hotel located in Vietnam still carries on activities under limited financing due to the border closure with China. However, Donaco International Limited recently reported signs of hope that EBITDA is turning back on its track as of July.
For the first time in 2021, Donaco International Limited company saw an upbeat EBITDA tune of AU$300,000. It was just after EBITDA attracting the local clientele to its Cambodian and Vietnamese properties.
Paul Porntat Amatavivadhana, the non-executive chairman of Donaco International Limited, said that the second outbreak of Covid-19 in January to an extreme outbreak in April 2021 posed a significant challenge in the revenue fiscal year 2021. He concluded that they could balance the internal operations and maintain its balance sheet only if they continue pinpointing what they can probably control.
They have used everything they have at their disposal to keep the business in the company on track. Just like other businesses adjusting and improving with the current situation Donaco International Company has to. The government will soon open the international borders, and the casinos will receive clientele from overseas, and the external conditions will bounce back on track.
Donaco International Limited Company Transformations
Donaco company has undergone a substantial transformation since the fiscal year 2019. Thai Vendors have been a significant contributor to Donaco through:
- Battling and claiming a sizeable stake for the Donaco company board
- Completing a comprehensive board makeover
- As of September 2020, they implanted one of their own, Lee Bug Huy, as CEO of Donaco Limited Company.
The company is dedicated to minimizing the spread of Covid-19 by keeping its staff and customers safe. Their primary goal is to maintain a balanced internal business operation. They have enforced measures and mitigation activities to lower costs which minimized the operating expenses to AU$1.3 million.
Donaco International Limited has plans on how they can repay their debts amounting to US$1 million over six months which commenced as of June 2021 and is likely to end in November 2021. It will finalize other financial installments by 31st December 2021.