Donaco International Limited (ASX:DNA) (FRA:UGS) provides the following trading update for the three month period ending March 2020.

Highlights

- Quarterly revenue of A$10.53 million compared to A$25.50 million in prior corresponding year

- Board and Management continue to tightly control operating and capital expenses while operations remain impacted by COVID-19 restrictions

- Settlement reached with Thai Vendor to preserve shareholder value

- Ongoing discussions with principal lender Mega Bank

- Financial position strengthened by cash balance of A$18.87 million as at 31 March 2020

The March quarter was significantly impacted by the onset of COVID-19 and the resultant restrictions on casino operations and border closures.

Overall group results were negative EBITDA A$1.13 million for the March quarter compared to A$10.82 million in the prior corresponding period of 1 January 2019 to 31 March 2019 (pcp).

In relation to the performance of each of the casinos:

- DNA Star Vegas, had revenue of A$8.37 million and EBITDA of A$0.5 million respectively.

- Aristo International Hotel, had revenue of A$2.6 million and EBITDA was A$0.5 million.

The Company has a negative cash flow from operations of A$5.1 million and net debt increased from A$50.9 million in pcp to A$60.8 million.

Further, DNA Star Vegas and the Aristo Hotel have now been closed since 1 April 2020 due to Government orders in both Cambodia and Vietnam to temporarily close all casinos.

Aristo may reopen in May 2020 depending on a decision from the Government of Vietnam.

The closure of both casino operations is having a material impact on Donaco's business while the Company is undertaking measures to reduce costs, including headcount, to preserve liquidity.

As previously advised, while both operating casinos remain closed, the Company expects a cash burn run rate from maintaining the casino assets and associated corporate costs of approx. US$800,000 to US$900,000K per month.

Commenting on the period, Chairman Mel Ashton, said: "This was a tough quarter for Donaco with both of our casinos impacted by COVID-19 with considerably less gaming activity occurred. Now that our casinos are temporarily closed, the preservation of liquidity is a key priority. We will continue to make sure we have adequate measures in place and remain in a healthy financial position for when operations will restart."

Related party payments for the period included director fees paid from the approved pool of fees as approved by the shareholders of $755k.

As at 31 March 2020, the Company's cash holding was A$18.87 million.

To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/HH0D2Q7R


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.

   

Contact

Investors
Leo Chan / Kurkye Wong
Donaco International Limited
Leo.chan@donacointernational.com
Kurkye.wong@donacointernational.com

Media
Shane Murphy
FTI Consulting
+61 420 945 291
shane.murphy@fticonsulting.com



Link: Quarterly Activities Report & Appendix 4C



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