Cambodia Star Vegas casino boost Donaco revenue growth

The last quarter of 2024, Cambodian casino Star Vegas, located in Poipet, generated net revenue of $4.09 million for the quarter, up from $3.1 million a year earlier, with Property Level EBITDA rising 16.9 percent year-on-year to $2.63 million.

Property Level EBITDA refers to the calculation of a company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) specifically for a single property or real estate asset, essentially measuring the operational profitability of that individual property without considering any financial obligations or non-property related costs at the corporate level.

Average daily visitation of 957 players was up from 861 a year earlier and 941 in the September quarter, the company said.

At Donaco’s other casino, Aristo International in northern Vietnam, net revenue grew 3.3 percent year-on-year but fell 2.7 percent quarter-on-quarter to $2.32 million. Property Level EBITDA of $1.44 million was slightly up on the same period in 2023 but down from $1.57 million in the September quarter.

The company’s Non-Executive Chairman, Porntat Amatavivadhana, said, “Donaco has reported another consecutive quarter of stable earnings and performance across the Group, while continuing to implement operational synergies.

“The December Quarter enabled Donaco to strengthen its cash position, which now stands at $22.6 million, reflecting a 10 percent increase over the previous quarter. This increase is attributable to a steady performance across our operations, combined with the ongoing execution of stringent cost control measures.

“Focusing on Aristo, the operation performed consistently with previous quarters and demonstrated improvement over the last year. There is no further update on the outcome of legal proceedings to challenge the validity of Vietnam’s General Department of Taxation following its decision to impose tax on unredeemed chips held at Aristo. We will continue to keep our shareholders informed as more information comes to light.

With regard to concerns over the potential impact of Thailand’s draft casino bill on Star Vegas, Porntat added, “We are actively monitoring developments in Southeast Asia’s evolving gaming industry landscape, including the Thailand Government’s proposed Draft Entertainment Complex Business Act, and will continue assessing its potential impact on our DNA Star Vegas operations.”

Cambodia earned tax revenue of $63.1 million from casinos and game of chance operators in 2024, a year-on-year increase of 85 percent, latest data released by the Commercial Gambling Management Commission of Cambodia (CGMC) reveals.

“Based on the figures, we can assess that the overall tax revenue from the commercial gambling sector was quite good last year,” the CGMC said.

According to the CGMC, the country has granted operating licenses to 195 casinos, but 15 of the licenses have expired, one has been revoked, and one has been suspended.

The CGMC has licensed 21 operators, but one has been cancelled, and three others have been suspended.

Cambodia grants licenses to casinos to attract foreign tourists. All the casinos have been established along border areas and in the coastal province of Preah Sihanouk, except one in the capital, Phnom Penh. Under the Kingdom’s law, only foreigners are allowed to gamble across casinos, which are mostly located on borders with Thailand and Vietnam.