Donaco International Limited has reported a return to positive EBITDA as COVID-19’s impact on the business lessens. Positive EBITDA was reported for October and November 2020, with the trend continuing into December.
The company’s EBITDA for October and November was $540,000 and $800,000 respectively. The rising numbers can be attributed to the reopening of Star Vegas Resort and Club in Cambodia and Aristo International Hotel in Vietnam. The report stated the growing EBITDA is expected to carry over to December as well “since its limited reopening Star Vegas is no longer making a loss.”
Donaco stated the growth can be attributed to the “initiatives implemented by the new Board and Executive team including a shift in customer targeting, alongside continued cost control strategy.” The company’s casinos are still operating on a limited basis but are prepared to return to full operation as the situation eases.
The statement touched upon the debt Donaco owns to Mega Bank. The original borrowed amount was $100m, and with the reduction of $5m on 11 December 2020, the remaining outstanding debt is $7.8m, which the company hopes to pay off in 2021.
The company ended the announcement on a positive note, stating: “The Company is also proactively exploring alternative options to access the gaming sector and will update the market on developments in due course.”