Donaco International reported total net revenue of A$92.65 million ($66 million) for the 12 months ended June 20, up 29 percent on the same period the year before.
The results only include the Aristo International Hotel in Vietnam, which is approximately 15 percent of the company’s overall business, in terms of net revenue.
The performance of Aristo was affected by a number of specific factors during the year, which include the property being adversely affected by China’s travel warning for Vietnam, the Soccer World Cup, and an earthquake in the Aristo’s main target market of Yunnan Province
“Despite these factors, the Aristo saw steady increases in casino visitation and gaming turnover, as noted above. However actual results were affected by the below theoretical win rate on VIP table games.”
The theoretical win rate for VIP baccarat in Asia is generally accepted to range between 2.7 percent and 3 percent of rolling chip turnover. The company normalises its revenue from VIP table games in the middle of this range, at 2.85 percent, in line with other Asian casino operators.
The difference between the theoretical win rate of 2.85 percent and the actual win rate of 1.93 percent represents a difference of A$13.73 million in net revenue.
The company added that the Aristo saw increases in operating expenses primarily related to the increased scale of operations at the new property, which opened in May 2014.
The workforce was scaled up from 420 staff at the start of FY14, to 850 staff at the start of FY15. “Staff numbers were scaled down to 800 during the year, but due to recent increases in business activity and visitation, have again been increased to 850.”
For the recently acquired Star Vegas property in Cambodia the company said actual net revenue from the property in the month of July 2015 was US$9.9 million, which is 54 percent above the monthly average for FY15.
Donaco recently entered into an agreement with junket operator Heng Sheng Group to bring VIPs to the Star Vegas.