{"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

Seemingly defiant of the growing adversity at its doorstep, Donaco\u2019s Star Vegas Resort and Club<\/a> improved on the previous year\u2019s visitor numbers. \u00a0The venue recorded an impressive VIP turnover swell of 76% \u2018due to the full-year impact of junkets brought in to replace those poached by the Thai vendor in the fiscal year 2018\u2019 according to the report.<\/p>\n

Bouncing back in Vietnam:<\/strong><\/p>\n

According to Donaco, \u201ca weak start to the year\u2019 at their gaming operation inside northern Vietnam\u2019s\u00a0Aristo International Hotel set their VIP business back 54%.\u00a0 This, in turn, led to an annual drop in 0\/revenues by 16.6% year-on-year to\u00a0around $14.57 million<\/p>\n

Fortune shifted in the firm\u2019s favour, with the enterprise recovering in the second half of the year as they posted\u00a0a full-year win rate that was 0.18 percentage points higher\u00a0than the previous twelve-month period at 2.09%.<\/p>\n

Changing faces as heads roll:<\/strong><\/p>\n

GGRAsia<\/a> further reported that Donaco subsequently used a second filing to report significant operational and management changes. \u00a0The recent appointment of Paul Arbuckle as its new Chief Executive Office stands out as the most prominent. \u00a0A desire for a \u2018fresh start\u2019 inspired the removal from its board in July of two founding members. \u00a0Joey Lim Keong Yew and Ben Lim Keong Hoe, the grandsons of Genting Malaysia Berhad and founder Lim Goh Tong were obliged to vacate their posts for the sake of the organization\u2019s future.<\/p>\n

A humbling renewal:<\/strong><\/p>\n

In poignant fashion, Donaco International Limited used this presentation as a means to lay them bare. Reflecting on their most recent full-year results, they admitted that a \u2018lack of effective management and leadership under [the] former executive team\u2019 had lead to this catastrophic freefall in the company\u2019s fortunes.<\/p>\n

The firm was happy to share that the newly appointed senior leadership had made \u2018an immediate positive impact\u2019, with their\u00a0July results from both operations showing significant improvement.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Impairment charges pummel Donaco International Limited amidst annual losses Asian casino operator Donaco International Limited have found themselves in troubled waters. 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 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"categories":[5,6,1],"tags":[30,27,31],"class_list":{"0":"post-602","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-australian-casinos","7":"category-casino-news","8":"category-uncategorized","9":"tag-donaco","10":"tag-ggrasia","11":"tag-star-vegas-resort","12":"entry"},"yoast_head":"\nImpairment charges pummel Donaco International Limited amidst annual losses - UberPokies.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/uberpokies.org\/impairment-charges-pummel-donaco-international-limited-amidst-annual-losses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Impairment charges pummel Donaco International Limited amidst annual losses - UberPokies.org\" \/>\n<meta property=\"og:description\" content=\"Impairment charges pummel Donaco International Limited amidst annual losses Asian casino operator Donaco International Limited have found themselves in troubled waters. 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