Donaco International, an Australian casino operator, recently revealed that its Cambodian Star Vegas Casino has reopened after a year of being closed.
As per the company’s most recent financial update filed with the Australian Securities Exchange, Donaco generated net revenue of $162,000 for the first quarter of 2022, 91.7% less than it earned in the same period for 2021. The operator had to rely on its Aristo International Hotel revenue in Vietnam exclusively to bring in revenue.
The casino was shut down On 27 April 2021 and struggled to get approval from the Cambodian government to operate again.
The company’s Aristo casino has kept it partially buoyant, but Donaco needs more to prosper. Fortunately, the combination of a new airport in the same region as the casino and the country’s now relaxed travel conditions paints a picture of a favourable outcome.
The operator’s non-executive chairman, Paul Porntat, advised that the company is upbeat about the future.
“Vaccination rates have increased, leading to the easing of borders and travel restrictions in the regions we operate. It will take some time before travel patterns return to normal, and we are prepared for when international tourism will steadily resume again,” he said.
In the interim, the company is doing what it can to ensure its survival, including paying off a $93 million loan with Mega Bank International. Donaco’s CEO and executive director, Lee Bug Huy, also recently issued the company a $5 million loan.
Donaco took out the Mega Bank loan in 2015 and paid a final US$1.8 million instalment on 30 December 2021. The company had previously redrawn US$20 million in 2016 and refinanced US$57 million in 2017.
In an official announcement, the company celebrated the clearing of its debt.
“Donaco is pleased to confirm that there is no more outstanding loan balance owed to its lender Mega Bank. We continue to preserve a robust balance sheet and maintain prudent cost control as we wait for the COVID-19 pandemic to ameliorate in Vietnam and Cambodia,” the statement read.