Donaco International announced its financial results for the quarter ended June 30, 2024, showcasing significant growth and notable fluctuations across various financial metrics. The group’s net revenue for the June quarter stood at AU$10.81m (US$7.09m), representing a year-on-year increase of 57.1%. However, this figure was down from the AU$12.66m recorded in the March quarter.
Donaco International Announces Financial Results for June Quarter 2024
Net Revenue Analysis
The net revenue of AU$10.81m for the June quarter marks a substantial growth of 57.1% compared to the same period last year. Despite this impressive year-on-year increase, the revenue saw a decline from the AU$12.66m reported in the March quarter. The revenue dip from March to June highlights the volatile nature of the gaming industry and the impact of fluctuating VIP win rates on the overall financial performance.
Group EBITDA Insights
Donaco’s group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) experienced a significant rise of 164.2% to AU$6.34m compared to the same period last year. However, similar to net revenue, EBITDA for the June quarter was down from March’s figure of AU$8.39m. This decline can be attributed to the higher-than-expected VIP win rate at the DNA Star Vegas casino.
Impact of VIP Win Rate
The VIP win rate at DNA Star Vegas was a notable 10.82% in the June quarter, compared to 4.27% in the March quarter. This higher win rate, while beneficial in the short term, impacted overall earnings and EBITDA for the group. The volatility in VIP win rates underscores the challenges faced by gaming companies in maintaining stable financial performance.
Operational Performance
Average Daily Visitation
Average daily visitation across both operations increased in the June quarter when compared with March’s figures. This rise in visitation is a positive indicator of Donaco’s operational strength and its ability to attract and retain customers. Year-on-year, both DNA Star Vegas and Aristo International Hotel saw net revenue growth, reflecting the effectiveness of Donaco’s strategic initiatives.
Performance of DNA Star Vegas
Donaco’s Non-Executive Chairman Porntat Amatavivadhana highlighted the stable performance of DNA Star Vegas, noting that the property recorded stabilized property-level EBITDA and net revenue figures. Despite the higher-than-usual VIP win rate, the company’s turnaround strategy successfully minimized operating expenses during a period of stronger visitation.
Performance of Aristo International Hotel
The Aristo International Hotel also reported high visitation levels in line with the March quarter, alongside an increase in net revenue over the period. However, a minor surge in operating expenses affected the operation’s property-level EBITDA. Despite this, Donaco remains confident in Aristo’s long-term potential, particularly with the anticipated opening of the new Sapa airport in 2025.
Strategic Insights and Future Outlook
Turnaround Strategy and Operational Focus
Donaco’s strategic focus on stabilizing operations and enhancing customer experience has yielded positive results. The company’s ability to report robust financial and visitation numbers following stable quarters across its operations is a testament to its effective management and operational excellence.
Future Growth Prospects
The anticipated opening of the Sapa airport in 2025 is expected to significantly boost Aristo’s performance by increasing accessibility and attracting more visitors. Donaco’s proactive approach to managing operating expenses and focusing on providing high-quality experiences to its customers positions the company well for future growth.
Chairman’s Statement
Porntat Amatavivadhana emphasized the company’s commitment to maintaining strong financial performance and delivering value to its stakeholders. He stated, “Donaco has consistently reported robust financial and visitation numbers following stable quarters across our operations. In the period, we stabilized our operations and focused on providing a high-quality experience to our customers. This is evidenced by the improving average daily visitation across both Star Vegas and Aristo.”
Conclusion: The Financial Results
Donaco International’s financial results for the June quarter 2024 reflect both growth and challenges. The significant year-on-year increases in net revenue and EBITDA underscore the company’s resilience and effective management. While the higher-than-expected VIP win rate at DNA Star Vegas impacted short-term earnings, Donaco’s strategic initiatives and operational focus are set to drive long-term growth and stability.
FAQs About Donaco International’s Financial Results for the June Quarter 2024
1. What period do the financial results cover?
The financial results cover the quarter ended June 30, 2024.
2. What was Donaco International’s net revenue for the June quarter 2024?
Donaco International’s net revenue for the June quarter 2024 was AU$10.81m (US$7.09m).
3. How does the June quarter net revenue compare to the previous quarter?
The net revenue for the June quarter was down from AU$12.66m recorded in the March quarter.
4. What was the year-on-year growth in net revenue?
The net revenue grew by 57.1% year-on-year.
5. What was Donaco’s group EBITDA for the June quarter 2024?
The group EBITDA for the June quarter 2024 was AU$6.34m.
6. How does the June quarter EBITDA compare to the same period last year?
The EBITDA saw a significant rise of 164.2% compared to the same period last year.
7. Why were group earnings and EBITDA down for the June quarter compared to the March quarter?
Group earnings and EBITDA were down due to a “higher-than-expected VIP win rate at the DNA Star Vegas,” which was 10.82% in the June quarter compared to 4.27% in the March quarter.
8. How did average daily visitation perform in the June quarter?
Average daily visitation across both operations increased in the June quarter compared to March’s figures.
9. What impact did the higher VIP win rate have on DNA Star Vegas?
The higher VIP win rate impacted overall earnings and EBITDA for the group, though DNA Star Vegas recorded stabilized property-level EBITDA and net revenue figures.
10. What were the key highlights for the Aristo International Hotel during the June quarter?
The Aristo International Hotel reported high visitation levels in line with the March quarter and an increase in net revenue. However, a minor surge in operating expenses affected the operation’s property-level EBITDA.
11. What is the outlook for Aristo International Hotel with the new Sapa airport opening?
Donaco is confident in Aristo’s long-term potential, especially with the opening of the new Sapa airport in 2025, which is expected to boost accessibility and attract more visitors.
