No impact on mass
Australia-listed operator Donaco International plans to fill “currently underutilized space” at its Star Vegas Resort & Club in Poipet, Cambodia in the next few months. The addition “represents a new source of incremental revenue in FY17 and beyond,” said the company in a filing to the Australian Stock Exchange earlier this month.
Not incidentally, the company said it is making “good progress” marketing the property to a new group of international VIPs, reported the Asia Gaming Brief.
“During this transition period, Donaco anticipates that earnings from the VIP portion of the Star Vegas business in the first quarter of FY18 will be lower than the corresponding months last year,” said Donaco in a statement, adding it does not expect an impact on mass play.
In May, Donaco said it expects to record EBITDA of $61 million for fiscal 2017 at Star Vegas. Its Aristo business has also performed strongly in fiscal 2017. Unaudited EBITDA for fiscal 2017 was RMB 73.2 million (US$10.8 million), up 38 percent year-on-year, reported AGB.
Donaco also will bring new junket operators to the property, the firm said in the filing. According to GGRAsia, in June Donaco announced a deal with casino marketing agency Vivo Tower Ltd. which will bring gambling junkets from “Macau, Hong Kong, Malaysia and elsewhere” to the property.
Under the terms of the deal, Vivo Tower will pay Donaco a minimum fixed fee of US$1.5 million in financial year 2018, rising to US$3 million thereafter for the right to bring high rollers to the property. It will also participate in a revenue-sharing agreement with the operator.
Donaco has taken over the management of Star Vegas from the previous owner, whose contract ended June 30.
