After the reopening of the Star Vegas Resort and Club in Cambodia in late September and the Aristo International Hotel in Vietnam, Donaco International has seen a positive EBITDA of US$0.54m and US$0.8m for the overall company for two months in October and November.
The rising trend continued into December and the company is highly encouraged that Star Vegas is no longer making a loss since its small reopening. In addition to the continued cost control strategy in place, the strategic measures introduced by the new Board and Executive team to address the effects of the COVID-19 pandemic are the key drivers of this development. Strategic initiatives include a shift in consumer targeting, with a renewed emphasis on attracting consumers to Star Vegas from the local area, in order to minimise the company’s foreign personnel costs and establish a strong growth platform.
The incremental easing of COVID-19 restrictions in the areas in which the group operates has strengthened the role of the sector in parallel with these initiatives. As the situation improves, the casinos, which are only operating on a limited basis, are able to resume full operations. Donaco’s CY21 plan will build on these pragmatic measures, backed by an improved strategy for balance sheet and cost management. Donaco is also in negotiations with Mega Bank to secure, as part of the terms of a Facility Agreement with the lender, a waiver for the effective settlement of all legal cases with the Thai Vendor. The Company remains
Donaco continues to pay down its debt to Mega Bank, which decreased by US$5 million on 11 December 2020. A substantial reduction from the initially lent amount of US$100 million is the outstanding debt of US$7.8 million, and the company anticipates repayment in FY21 of the remaining debt. The business is also proactively evaluating new strategies for entering the gaming industry and will in due course update the market on developments.