Donaco International's Q3 FY2024 Trading Update

Donaco International Limited (ASX: $DNA) has reported a significant 66% increase in EBITDA for the third quarter of the financial year 2024. The company's strong financial improvements resulted in a substantial increase in Group net revenue to A$12.66m from A$9.73m in the previous quarter, along with EBITDA of A$8.39m, up from A$5.06m in the same period. The company's operations have seen growth, with visitation numbers stabilizing and tourism in Cambodia and Vietnam returning to pre-COVID levels.

Executive Commentary on Q3 FY2024 Performance

Donaco's Non-Executive Chairman, Mr Porntat Amatavivadhana, highlighted the operational execution and increase in quality player visitation that fueled strong growth in the business during the March Quarter. He emphasized the considerable growth in property-level EBITDA and net revenue at Star Vegas, attributing it to the successful tourism campaign by the Cambodian Government. Mr Amatavivadhana also noted the consistent visitation at Aristo in Vietnam and expressed confidence in Donaco's ability to deliver continued solid results based on operational efficiencies and positive tourism trends in the region.

Summary of Q3 FY2024 Trading Update and Outlook

Donaco International's Q3 FY2024 trading update reflects the company's strong financial performance, driven by the increase in quality player visitation and the rebound of tourism in the region. With a robust cash position of A$28.99 million as of 31 March 2024, the company is well-positioned for continued growth in the coming quarter. The outlook remains positive as visitation numbers have stabilized across the company's operations, and the Vietnamese Government's progress on the development of the new Sapa airport is expected to drive a substantial uplift in visitation post-2025. Donaco's focus on operational efficiencies and the positive tourism trends in the region sets the stage for continued solid results in the future.