Donaco net profit jumps to A$13.4 million in second half year of 2015

Australian-listed Donaco International reported a 230 percent increase in net profit after tax at A$13.4 million (US$9.6 million) for the half year ended Dec. 31, 2015, compared to A$4.1 million for the same period in 2014.

Operating revenue went up 430 percent to A$69.8 million for the second half of the year, compared to A$13.2 million in 2014.

With regard to Star Vegas’ performance in the half, revenue was reported at A$55.5 million, with strong rolling chip turnover growth of 29 percent in reported currency, which was “driven by successful marketing campaigns, notably VIP baccarat tournaments in October and December.”

Donaco says they are considering options to expand Star Vegas into the Star Paradise Hotel, which will potentially include adding two new gaming floors totalling 2260 square meters as well as 240 recently upgraded hotel rooms. The expansion will allow Star Vegas to service high demand from Thai junkets and players, according to the company.

Aristo International Hotel also showed improvement compared to 2014, with revenue reportedly up 39 percent to A$13.4 million and EBITDA up 97 percent.

Donaco says investment in marketing and in facilities is expected to drive higher revenues in June 2016 half, and in future years. Other than this, Donaco will consider both growth opportunities as well as capital management initiatives given strong cash flow.