{"id":602,"date":"2019-09-01T22:47:41","date_gmt":"2019-09-01T12:47:41","guid":{"rendered":"https:\/\/uberpokies.org\/?p=602"},"modified":"2019-09-03T22:49:18","modified_gmt":"2019-09-03T12:49:18","slug":"impairment-charges-pummel-donaco-international-limited-amidst-annual-losses","status":"publish","type":"post","link":"https:\/\/uberpokies.org\/impairment-charges-pummel-donaco-international-limited-amidst-annual-losses\/","title":{"rendered":"Impairment charges pummel Donaco International Limited amidst annual losses"},"content":{"rendered":"
Impairment charges pummel Donaco International Limited amidst annual losses<\/strong><\/p>\n Asian casino operator Donaco International Limited have found themselves in troubled waters.<\/p>\n Their recently released financial results for the twelve months to the end of June show an annual loss that widened by 55.8% year-on-year to hit nearly $130.88 million. The cause was $134.99 million in non-cash impairment charges.<\/p>\n A report obtained from GGRAsia, reveals that the Sydney-listed firm used an official filing to detail the impairment charges. These included a $125.86 million setback linked to the value of the casino license for its Star Vegas Resort and Club property. This followed an attempt by the owner of the Cambodian venue to terminate its 50-year lease. The matter currently remains the subject of litigation.<\/p>\n Profits through the floor<\/strong><\/p>\n Despite the impairment penalties, Donaco\u2019s underlying net profit after tax, for the twelve-month period had reached approximately $6.19 million.\u00a0However, this represented a year-on-year decline of 49.7%.<\/p>\n Overall annual revenues had plummeted by 6.8% to hit approximately $58.21 million, while its earnings before interest, tax, depreciation, and amortization were 30.2% lower at around $19.96 million.<\/p>\n Donaco cited\u00a0rising competition in the Cambodian casino market\u00a0as the cause of an overall annual reduction in revenues for its\u00a0Star Vegas Resort and Club. The revenues fell by a little over 2.8% year-on-year to\u00a0slightly above $43.64 million.\u00a0 The venue\u2019s net gaming revenues also shrank by 9.9%.<\/p>\n To add to the firm\u2019s woes, unfavourable junket deals, linked to previous management team members, had negatively impacted their facility located in the border town of Poipet. Donaco hopes that a process of renegotiating some of these arrangements will yield favourable results.<\/p>\n