Donaco International Delivers Strong Q4 FY2024 Performance
DONACO INTERNATIONAL LIMITED (DNA) Share Update July 2024 Friday 26th
Donaco International Reports Strong Q4 FY2024 Results
Donaco International Limited (ASX: DNA) has reported strong financial results for the fourth quarter of FY2024, showcasing stabilized earnings and robust financial management across its operations.
Instant Summary:
- Group net revenue of A$10.81 million, down from A$12.66 million in the March Quarter.
- EBITDA of A$6.34 million, a decrease from A$8.39 million in the March Quarter.
- Aristo International Hotel reported revenue growth to A$3.97 million.
- Cash position increased to A$29.30 million as of 30 June 2024.
- Star Vegas saw an increase in average daily visitation to 1,019 players.
Financial Performance
Donaco International Limited has delivered a strong performance in Q4 FY2024, despite a slight decrease in earnings compared to the previous quarter. The Group recorded net revenue of A$10.81 million, down from A$12.66 million in the March Quarter, and EBITDA of A$6.34 million, down from A$8.39 million in the March Quarter. This decrease was primarily due to a higher-than-expected VIP win rate at the DNA Star Vegas operation.
Over the past 12 months, Donaco has seen a significant 164% increase in EBITDA compared to the June Quarter of 2023, demonstrating steady growth and robust financial management.
Operational Highlights
Donaco's Star Vegas operation, located on the Cambodia-Thailand border, reported net revenue of A$6.84 million and property-level EBITDA of A$4.65 million. The resort saw an increase in average daily visitation to 1,019 players, up from 872 in the March Quarter, thanks to Donaco's membership loyalty program launched in January 2024.
Meanwhile, the Aristo International Hotel in Vietnam recorded improved revenue and visitation, with net revenue of A$3.97 million, a 3.4% increase over the March Quarter's A$3.84 million. Average daily visitation increased to 291 players, up from 246 players in the March Quarter. The property-level EBITDA was A$2.47 million, slightly down from A$2.53 million in the March Quarter.
Cash Position and Financial Stability
Donaco ended the period with an increased cash position of A$29.30 million, up from A$28.99 million in the March Quarter. Payments to related parties and their associates totaled A$202K, mainly for salaries and contracted services.
Outlook and Future Developments
Looking ahead, Donaco is well-positioned for FY2025, with a resilient balance sheet and growing cash balance. The company has benefited from successful tourism campaigns by local governments, leading to increased visitation numbers. However, potential disruptors such as the possible legalization of casinos in Thailand and a tax audit in Vietnam could impact future operations.
The strong Q4 results reflect Donaco's effective financial management and operational strategies. The increase in visitation and revenue growth at both Star Vegas and Aristo highlights the company's ability to attract and retain customers. However, the potential legalization of casinos in Thailand and the tax audit in Vietnam present uncertainties that could affect future performance.
Investor Reaction:
Investors and analysts have reacted positively to Donaco's robust financial results, noting the significant growth in EBITDA and the company's strong cash position. However, there is cautious optimism due to the uncertainties surrounding the potential legalization of casinos in Thailand and the ongoing tax audit in Vietnam.
Conclusion:
Donaco International has demonstrated strong financial performance in Q4 FY2024, with significant growth in revenue and EBITDA. Investors should keep an eye on the potential developments in Thailand and Vietnam, as these could impact the company's future operations. Overall, Donaco's strategic focus on customer experience and financial stability positions it well for continued growth.