Donaco profits widen in FY17H1

Australia-listed Donaco International posted a higher profit in the first half of FY17, up 5 percent to A$14.8 million (US$11.4 million), according to a filing to the ASX on Thursday.

Group revenue was A$59 million, down from A$68.9 million in the prior year period.

The company said its overall performance was consistent with its trading update released last year at its November AGM.

Aristo, its boutique casino in northern Vietnam posted EBITDA of RMB 42.6 million (US$6.2 million). The company said the business benefited from “management initiatives to increase mass market visitation and reduce exposure to VIP segment.”

Star Vegas, its casino in Poipet, reported EBITDA of THB 803 million (US$23 million), down 17 percent year-on-year. Donaco said reduced VIP win rate, as well as weaker consumer sentiment and economic conditions in Thailand was only slightly offset by a reduction in costs, particularly ones related to junket commissions and operating expenses.

The company said it is anticipating improved performance for both venues in the second half of FY17, with operational performance showing improvement during recent weeks at Star Vegas, and marketing strategies for Aristo continuing to hone in on mass market players.