Donaco International said on Tuesday that it does not expect to post a statutory net profit for the 2018 fiscal year, due to an anticipated impairment charge.
Said impairment charge is estimated at A$144 million (US$113.3 million).
In a Tuesday filing, Donaco said the impairment is the direct result of the breaches of agreement by a former Thai vendor, who had been operating competing gaming activities without consent.
While a preliminary injunction was granted against the defendants, the overall litigation continues – with Donaco now claiming damages of US$120 million.
Donaco said that the impairment won’t have an impact on the company’s cash flows, but will impact on the company’s statutory net profit for the year. The impact will also stretch into the company’s capital management plans for the 2018 financial year, which takes into account forecasted net profit.
In other news, Donaco’s board has appointed Gerald Tan as chief operating officer of the company.
Mr. Tan is currently the vice president of business development at Donaco, tasked with spearheading Donaco’s business partnerships and VIP / junket operations at Star Vegas.
In his new role, Mr. Tan will focus on driving revenue and earnings from the Star Vegas business.