Australia-listed Donaco International Ltd says its “normalized” EBITDA is on track to hit A$90-95 million (US$65-69 million), whilst actual EBITDA has been hit with a lower than normal win rate.
“It’s definitely not a downgrade,” said executive director Ben Reichel.
However, the casino operator said that its actual EBITDA was about US$7.3 million below the 10-month normalized results due to the higher than normal win rate from high rollers at the Vietnam-based Aristo International Hotel.
Despite the win rates at the Aristo, actual EBITDA is up 38 percent for the 10 month period, said the operator.
In regards to Donaco’s other properties, Star Vegas also showed promise, with strong constant currency growth in revenue (+8.5 percent) and EBITDA (+6.4 percent), particularly in the most recent months in the lead up to April 2016.
As noted in the half year results earlier in the year, the company is also considering options to expand the gaming business at Star Vegas into the adjoining Star Paradise property. Discussions are still ongoing, said the operator.
“Overall, Donaco International is performing in line with analysts’ expectations at group level on [a] normalised basis, driven by strong performance from both the Star Vegas Resort and Club and Aristo International hotel assets,” concluded Donaco in its market update.