Donaco International’s Q4 FY2025 results reveal a revenue dip driven by geopolitical tensions at its Star Vegas casino, while its Vietnam hotel posts gains. Meanwhile, the company’s proposed acquisition by On Nut Road Limited moves closer to shareholder approval.
- Group net revenue falls to A$8.47m in Q4 FY2025
- Star Vegas casino revenue down 31% due to Thailand-Cambodia border closure
- Aristo International Hotel in Vietnam reports 11% revenue growth
- Strong cash position maintained at A$39.63m
- Board unanimously recommends shareholder approval of On Nut Road acquisition scheme
Mixed Quarterly Performance Amid Regional Challenges
Donaco International Limited’s latest quarterly report for the period ending June 30, 2025, highlights a challenging operating environment shaped by geopolitical tensions and regulatory shifts. The company posted Group net revenue of A$8.47 million, down from A$10.03 million in the prior quarter, alongside a decline in EBITDA to A$3.68 million from A$4.10 million.
The primary drag on performance was the Star Vegas casino in Cambodia, which experienced a 31% revenue drop to A$4.31 million. This decline is directly linked to an ongoing border dispute between Thailand and Cambodia, which led to the closure of nearly all land crossings from June 24, 2025. Star Vegas’s core customer base, largely Thai visitors, was effectively cut off, reducing average daily visitation from 928 to 758 players and halving property-level EBITDA to A$1.78 million.
Vietnam Operations Provide a Bright Spot
In contrast, Donaco’s Aristo International Hotel in Vietnam near the Chinese border showed resilience and growth. The property reported an 11% increase in net revenue to A$4.16 million and a rise in EBITDA to A$2.52 million. Slightly improved visitation numbers and a recovering regional tourism sector contributed to this positive momentum, underscoring Aristo’s role as a stabilizing asset amid broader uncertainties.
Financial Stability and Strategic Outlook
Despite the operational setbacks, Donaco maintained a solid cash position of A$39.63 million, reflecting prudent financial management. The company also continues to implement strategic cost controls to navigate the uncertain short-term outlook, particularly for Star Vegas, where the border dispute remains unresolved and subject to rapid developments.
On the regulatory front, the withdrawal of Thailand’s proposed Entertainment Complex Business Act following a cabinet reshuffle is a positive development for Star Vegas’s operational framework. However, the immediate benefits are limited by the ongoing border closure, leaving the regulatory environment cautiously optimistic but still uncertain.
Acquisition Scheme Progresses Toward Shareholder Vote
Corporate developments remain a focal point as Donaco advances its proposed acquisition by On Nut Road Limited. The binding Scheme Implementation Deed, announced in March 2025, offers shareholders A$0.045 cash per share for the remaining shares not already owned by ONR. The Scheme Meeting is scheduled for August 4, 2025, with the Donaco Board unanimously recommending shareholder approval in the absence of a superior proposal and contingent on the independent expert’s continued endorsement.
This acquisition could mark a significant turning point for Donaco, potentially providing new strategic direction and capital resources. Shareholders and market watchers will be closely monitoring the outcome of the vote and any subsequent developments.
Bottom Line?
Donaco’s near-term prospects hinge on resolving border tensions and shareholder approval of its acquisition, setting the stage for a pivotal phase.
Questions in the middle?
- How long will the Thailand-Cambodia border dispute continue to impact Star Vegas operations?
- What strategic changes might On Nut Road Limited implement post-acquisition?
- Can Aristo International Hotel’s growth offset ongoing challenges at Star Vegas in the longer term?