Vietnam Operations Gets Donaco Back Into Profit In Q3

Vietnam Operations Gets Donaco Back Into Profit In Q3

Gaming technology and services provider Donaco International Ltd has been battling with slumping revenue for a long time, 18 months to be precise. However, the company’s strong growth at Vietnamese casino Aristo helped bring it back to profit in Q3.

The company has been facing legal disputes with former vendors of its Star Vegas property in Cambodia and these have been taking a toll on its revenue.

The Group’s revenue grew by 42 percent in the three months to September 30 and its EBITDA jumped 167 percent to AU$8.9 million.

On the improved group-wide results, Donaco said, “The increase in revenues is pleasing given that the September quarter is traditionally not a particularly busy quarter for either of the Company’s casino properties. The public holiday calendar in Cambodia and Vietnam tends to skew the results towards the June half-year.

“The new management team led by CEO Paul Arbuckle has just begun to implement improvements in operating procedures, which are expected to generate further improvements in results in future periods.”

Donaco posted a net profit after tax of AU$3.8 million for the quarter. Last year for the same period the company had incurred a loss of AU$1.8 million.

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