Casino operator returns to positive EBITDA

Casino operator Donaco International has provided a positive update on trading conditions as Covid-19 impacts to the business subside.

Since the reopening of the Star Vegas Resort and Club in Cambodia in late September and the Aristo International Hotel in Vietnam, Donaco is pleased to report two months of positive EBITDA for October and November of USD$0.54m and USD$0.8m respectively.

The growing trend has continued into December and the company is extremely encouraged that since its limited reopening Star Vegas is no longer making a loss.

The main drivers of this growth are the strategic initiatives executed by the new board and executive team to weather the impacts from the Covid-19 pandemic, alongside the continued cost control strategy in place.

Strategic initiatives include a shift in customer targeting, with a renewed focus on attracting clientele from the local region to Star Vegas, to in turn reduce the company’s international staff expenses and provide a solid platform for growth.

In tandem with these initiatives, the gradual easing of Covid-19 restrictions in the areas the company operates in has improved the position of the business.

The casinos, which are still running on a limited basis, are ready to resume to full operations as the situation ameliorates. Donaco’s strategy for CY21 will build on these pragmatic initiatives, underpinned by a strengthened balance sheet and cost control strategy.