Investor Presentation
Sydney, Feb 24, 2017 AEST (ABN Newswire) - Donaco International Ltd (
ASX:DNA) is pleased to provide the Company's latest Investor Presentation.
1H17 Results Highlights
- Statutory NPAT up 5% to A$14.8 million
o Current period includes $3.7m of non-recurring expenses relating to non-cash amortization of warrants
o Previous corresponding period included $11.8 million of non-recurring expenses related to the Star Vegas acquisition
- Aristo EBITDA up 19% to RMB 42.6 million, as business benefits from management initiatives to increase mass market visitation and reduce exposure to VIP segment
- Star Vegas EBITDA THB 803m (down 17%), with normalised EBITDA of THB 854m (down 1.7%)
o VIP win rate of 2.75%, lower than 3.01% in pcp
o Significant reduction in costs, particularly junket commissions and operating expenses
o Weaker consumer sentiment and economic conditions in Thailand, following the passing away of the late King of Thailand. Some recovery being seen in recent weeks
o Online gaming launch imminent
- Corporate Costs reduced by A$1 m, compared to pcp
- Net debt reduced in line with management plans
o Net Debt to Equity ratio reduced to 14.1%
Outlook
- Donaco is anticipating improved performance from both venues for the June half of FY17
- Operational performance has shown improving trends during recent weeks at Star Vegas, which should be reflected in June half performance as the Thai economy continues to improve
o January 2017 rolling turnover up 8.4%, compared to last year
o Major public holidays in Thailand typically result in the June half being stronger than the December half
o Management is focused on attracting new junkets, and driving VIP gaming growth
o Launch of online gaming at Star Vegas is imminent
o Negotiations with Donaco's Thai partner remain on track to confirm his on-going involvement in the business beyond FY2017
- Marketing strategies for Aristo continue to be focussed on increasing the number of mass market players visiting the property, to reduce the volatility in win rate and earnings
o Trading has been strong in the months of January and February 2017 to date, with visitation continuing to increase, and win rates remaining solid
- The Board maintains its intention to actively employ prudent capital management strategies, including payment of a dividend following the full year result, combined with a further reduction in debt
To view the presentation, please visit:
http://abnnewswire.net/lnk/F5CKWY3U
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
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