Donaco International Limited, an Asian casino operator, has reported a knock in profits. In recently released financial results for the financial period ending June 30th, it had shown that the company’s loss had expanded by 55.8% on a year on year basis. The company’s loss is set at about $130.88 million. According to recent reports in the media, the casino operator reported a total net profit of $6.19 million in their 2018/19 financial year.
Donaco International Limited has detailed its financial woes in an official filing. In the documents, the company has revealed that they experienced a setback amounting to $125 million which had to do with the value of the Star Vegas Resort and Club’s license. The official filing also revealed that the annual revenue of the Australian head-quartered company had dropped by 6.8%.
Reasons Behind theDonaco International Limited Falling Profit
Donaco International Limited has reportedly placed the blame of their Star Vegas Resort and Club falling revenue on the rise in competition in the Cambodian casino industry. Despite all the troubles the resort has been faced with, they managed to draw in more visitors than their previous year. Another reason that may have contributed to their drop in profits is the junket deals that took place at their Poipet facility.
Donaco International Limited has also released financial records of its Vietnamese operation, Aristo International Hotel. They stated that the annual revenue of this operation had fallen by 16.6% on a year on year basis. The VIP business has suffered the most and this has been accredited to an apparent slow start to the year.
A Fresh Start
Donaco International Limited has announced the appointment of its new chief executive officer, among other managerial changes. Donaco has allegedly stated that the new CEO, Paul Arbuckle, is a fresh start for the company. Moreover, in July, two key board members were removed from the board of the company, Ben Lim Keong Hoe as well as Joey Lim Keong Yew.
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