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Donaco International Limited Reports Strong Financial Performance for 1H FY25

Typo3 Media

Donaco International Limited (Donaco) has announced a strong financial performance for the six months ended 31 December 2024 (1H FY25), demonstrating solid earnings growth and robust financial management.

Financial Highlights

Donaco reported a 12.2% increase in net revenue to A$21.83 million, up from A$19.45 million in the previous corresponding period (PCP). The company's EBITDA grew by 17.0% to A$11.39 million, compared to A$9.73 million in 1H FY24.

Further highlighting the company’s strong financial performance, group net profit after tax surged by 36.3% to A$7.77 million (1H FY24: A$5.70 million).

Donaco’s cash position strengthened significantly, with A$36.26 million in reserves as of 31 December 2024, marking a 44.3% increase from A$25.12 million recorded a year earlier.

Operational Performance

DNA Star Vegas (Cambodia-Thailand Border)

  • Recorded stable performance, with net revenue increasing to A$14.08 million (1H FY24: A$13.36 million).

  • EBITDA grew to A$8.10 million, compared to A$7.66 million in the previous year.

  • Player engagement increased, with an additional 949 daily visitors, largely driven by the membership loyalty program launched in January 2024.

Aristo International Hotel (Vietnam-China Border)

  • Showcased strong growth, with net revenue climbing 27.3% to A$7.76 million (1H FY24: A$6.09 million).

  • EBITDA saw a substantial increase of 39.9%, reaching A$4.85 million (1H FY24: A$3.47 million).

  • The upcoming opening of the new Sapa airport is expected to further enhance Aristo’s performance.

Strategic Developments and Challenges

Thailand’s Proposed Gambling Legislation

The Thai Government’s draft bill to legalize gambling could impact Donaco’s DNA Star Vegas operations. The proposal is open for public hearings until 1 March 2025.

Aristo’s Legal Proceedings in Vietnam

Donaco is currently awaiting the outcome of legal proceedings regarding tax payable on unredeemed chips at Aristo. In January 2025, two dialogue meetings were held with the General Department of Taxation (GDT) at the Hanoi People’s Court. The case will proceed to a public trial, though the date is yet to be determined. If GDT’s decision is upheld, Donaco may face a liability of approximately A$8.86 million.

Future Outlook

Despite regulatory uncertainties, Donaco remains optimistic about its financial future, supported by a strong cash position and steady revenue growth. The company continues to monitor developments in Thailand’s gaming regulations and the progress of Aristo’s legal case.

According to Donaco’s Non-Executive Chairman, Mr. Porntat Amatavivadhana:

“At a group level, Donaco performed strongly in 1H FY25, driven by our turnaround strategy, rigorous financial management, and increased tourism. While we face some challenges, we remain confident in our ability to navigate market dynamics and maintain our strong financial standing.”

Donaco remains committed to driving growth across its operations and expects continued financial stability for the remainder of FY25.

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