Donaco International’s Q1 FY2025 revenue performance dips slightly   

Donaco International Limited, the gaming and leisure operator behind properties in Cambodia and Vietnam, reported a net revenue reached AUD10.25 million (€6.3 million), reflecting a slight decrease from AUD10.81 million (€6.6 million) in the June quarter. Group earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell, from AUD6.34 million (€3.9 million) in the previous quarter to AUD5.55 million (€3.4 million). This decline primarily stemmed from the DNA Star Vegas property in Cambodia, where net revenue dropped to AUD6.3 million (€3.6 million) due to additional costs tied to the registration of new slot machines, which impacted earnings by approximately AUD0.37 million (€0.23 million).  

Star Vegas, located near the Cambodia-Thailand border, observed a dip in visitation metrics compared to the June quarter, but daily patron numbers held steady at an average of 941 visitors. The Aristo International Hotel in Vietnam, meanwhile, posted stable revenues of AUD3.95 million (€2.4 million) and saw a slight increase in visitation, averaging 306 daily players. Donaco closed the September quarter with a strengthened cash position of AUD33.02 million (€20.2 million), an improvement from the AUD29.3 million (€17.9 million) recorded in June.  

Regional developments and legislative watch in Thailand  

The evolving Southeast Asian gaming landscape presents potential shifts for Donaco’s Cambodia operations, particularly with Thailand’s proposed Entertainment Complex Bill. This legislation, under consideration by the Thai government, aims to legalise gambling within large entertainment complexes, including hotels and convention centres. With many patrons at the Star Vegas property coming from Thailand, the potential legalisation of casinos within the country could have a significant impact on cross-border tourism and revenue flows for Donaco.  

The company is actively assessing the implications of this proposed bill, recognising that while there is no immediate effect, future developments could prompt adjustments to its regional strategy. Star Vegas’ performance may see longer-term impacts, contingent on Thailand’s legislative decisions regarding casino operations.   “We remain committed to executing our strategy as we navigate Southeast Asia’s evolving gaming industry. As part of this, we are evaluating potential disruptors, such as the proposed Integrated Entertainment Business Act in Thailand, a bill to allow casinos to operate legally within entertainment complexes in the country, and the separate Aristo tax matter,” Porntat Amatavivadhana, Donaco’s Non-Executive Chairman, said.  

Legal challenge over tax dispute in Vietnam  

Donaco is currently in a legal dispute with Vietnam’s General Department of Taxation (GDT) over tax assessments related to floating chips at the Aristo property. After the GDT denied Donaco’s appeal concerning this tax liability, estimated at AUD8.86 million (€5.4 million), the company received court approval in October to proceed with legal action. The outcome of these proceedings may affect Donaco’s future financial outlook, with a resolution expected in the coming months.  

The Aristo International Hotel has continued to contribute positively to Donaco’s quarterly revenue, and this property stands to benefit from the upcoming Sapa Airport project in Lao Cai. Slated to open in 2025, this airport aims to increase tourism flow to the region, with a projected passenger capacity of 1.5 million per year.