Donaco’s Star Vegas massively boosts profit in FY16

Asian casino operator Donaco International Limited reported net profit of A$77.2 million ($58.2 million) in the fiscal year ended June 30, driven by strong operational results from Star Vegas and Aristo.

The casino operator reported a loss of A$5.2 million in the fiscal year 2015.

The year past was also the first full year to include revenue for Star Vegas Resort and Club, which the company acquired in early 2015 for a consideration of US$360 million.

Group revenue was A$143.4 million in FY16, up from A$20.4 million in 2015 as a result.

“We are pleased to have delivered a strong operational result from both of our gaming assets, with a major part of our earnings this year coming from Star Vegas, which contributed AUD120 million in revenue and A$87 million in underlying EBITDA,” said Joey Lim Keong Yew, Donaco’s managing director in a statement.

For the year ahead, Donaco says Star Vegas will further benefit from new markets and VIP gaming growth.

The Star Paradise property, which is an expansion of its Star Vegas business is said to start earning fee income from September 1, 2016, allowing for additional capacity for Thai junkets and players, earning recurring revenue from FY17.

The operator further announced a maiden dividend of $0.01 per share.