Donaco International Reports Strong Growth In Cambodia
Donaco International has built a name for itself in the hospitality and entertainment business across Asia Pacific and its flagship properties include the Star Vegas Resort and Club in Poipet, Cambodia and its successful Aristo International Hotel, which is a boutique hotel property in Vietnam.
Donaco International recently reported during its annual general body meeting that the company had done extremely well thanks to the significant revenues generated by the Star Vegas Property which made it the biggest earner in company.
The casino posted an eight six percent rise in revenue and a fifty seven percent rise in net profit when compared to 2014.
The decline in Macau’s gambling industry over the last 18 months has caused VIP gamblers from Mainland China to look for a new playing field and neighboring countries like Vietnam, Cambodia and the Philippines. The governments in these countries have also recognized the lucrative opportunity and have ensured their gambling laws are extremely flexible thereby encouraging VIP gamblers to spend heavily in their casinos and the results brought great dividends to the casino and the government.
The Star Vegas Property reported that the total rolling chip turnover amounted to $528 million which meant the yearly turnover till date was around $1.83 billion, which was a 99% increased when compared to last year. The revenue from table games rose by 79% to reach $26.77 million while slot machine revenue climbed to 59% and generated around $13.76 million.
In a statement, Stuart McGregor, Donaco Chairman said
The 2015 financial year has seen a dramatic increase in the size and scale of the company. We now operate two leading leisure and entertainment businesses in Asia, servicing tourists from both China and Thailand. Our ownership of these two leading properties provides substantial diversification benefits for the company. Both are located in special border economic zones, providing significant commercial benefits.
The total net revenue generated was $41.42 million which was an increase of 66% and the earnings before interest, taxation, depreciation and amortization (EBITDA) went up by 67% to reach $32.64 million. All these figures are in Australian dollars and do not include results generated by the VIP Rooms in Star Vegas which are run by junket operator, the Heng Sheng Group.
Donaco also confirmed that its Hotel in Vietnam was also doing well and had a 30% growth in 2015 when compared to 2014. The company had changed its strategy in Vietnam from focusing on VIP gamblers to mass market gamblers and this has helped to fill rooms and increase revenue.
