Leading casino operator Donaco International has recorded a negative EBITDA of A$1.1 million for the March quarter, compared to A$10.8 million in 2019. The March quarter was significantly impacted by border and casino closures, as a result of the COVID-19 pandemic.
The company also reported negative cash flow from operations of A$5.1 million and net debt increased to A$60.8 million from A$50.9 million in the prior-year period.
Donaco’s Star Vegas and Aristo Hotel have been closed since April 1 due to government orders in both Cambodia and Vietnam. The company said that Aristo may open sometime in May 2020, depending on a decision from the Vietnamese government.
“This was a tough quarter for Donaco with both of our casinos impacted by COVID-19 with considerably less gaming activity occurring. 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 restart,” Mel Ashton, chairman of Donaco International, said.
The company said it is undertaking measures to reduce costs, including headcount, to preserve liquidity.