Description
The chairman of boutique casino operator Donaco International says plans to develop an airport near Vietnam's Aristotel International Hotel, which can accommodate 1.5 million passengers a year, provide a major opportunity for casinos in Aristotel to "attract a significant number of new customers."
Fornath Amatavivadana, who serves as a non-executive board member, commented on the airport in remarks prepared for the Australian Stock Exchange Listing Group's annual general meeting on Friday.
Aristo International is in Lao Cai, near the border between Vietnam and China.
Donaco said the Sapa airport project was aimed at helping the regional economy in the region of Vietnam recover from the business impact of the COVID-19 pandemic.
The facility will be "built in Laoqai over the next three to four years," Donaco said.
The Aristotel Casino in Vietnam has been operating on a limited basis since May 8, 2020, after a previous period of closure due to the pandemic.
In an update to the Australian Stock Exchange in late October, Donaco said Aristotel International's net profit in the three months to September 30 was sequentially up year-over-year. Those revenues were A$710,000 ($516,873), compared with A$360,000 in the quarter to June 30 and A$200,000 in the quarter to September 30, 2020.
In an update earlier this month, the chief executive of Donaco, another senior company official, expressed confidence in Aristotel International's prospects, noting that the town of Sapa itself was a popular destination for tourists before the COVID-19 pandemic.
The Star Vegas Resort and Club, Donaco's flagship casino resort in Poipet, on the Cambodian-Thai border, has been closed since April 2021 due to the pandemic.
Donaco noted in a commentary on Friday that the group's current trading conditions had a monthly "cash burn rate" of about A$480,000, "in good agreement with the previously targeted range."
In August, Donaco reported negative group earnings before interest, taxation, depreciation and amortisation (EBITDA) of A$70,000 for the fiscal year ended June 30, 2021. However, the company reported positive net income of A$10.3 million.