Donaco International, the Australian-listed boutique operator of its casinos in Indochina, said on Friday it was seeking funds to support the company's payment obligations and working capital needs.

Donaco's flagship location, Star Vegas Resort and Club, is near the border between Cambodia and Thailand. The Aristo International Hotel and its associated casinos are near the border between Vietnam and China. The latter's real estate business was negatively affected by the COVID-19 virus outbreak, which was first reported in mainland China, according to the company.

"The board knows that the COVID-19 outbreak could tighten the company's liquidity as the China-Vietnam border was closed in January due to the COVID-19 outbreak," recently appointed Donaco Chairman Mel Ashton said in comments included in the company's earnings call for the six months to Dec. 31.

"Donaco seeks to approach financing to support the company's payment obligations and working capital requirements," he added

Donaco on Friday reported a net loss after tax of A$1.5 million ($985,000) for the six months ended Dec. 31, compared with a net loss after tax of A$36.8 million for the prior year. Last year's results included $4 million in non-cash impairment costs for the value of its Star Vegas casino license related to the cancellation of its online gaming license, the company said.

The group posted a 7.0% year-over-year increase in earnings before interest, taxation, depreciation and amortization (EBITDA) to A$13.8 million. The group's overall revenue was A$40.9 million, up 3.0% year-over-year, nearly 75% of which came from Star Vegas properties. Net gaming revenue for Star Vegas fell 18.3% year-over-year to A$531.5 million ($16.8 million), while for Aristo (pictured), gaming revenue rose 42.1% to A$27.0 million ($3.9 million) during the reporting period.

Mr Aston said in a commentary on Friday that over the near term, Donaco's board's priorities "are to maintain and further strengthen control of operating and enterprise costs, to improve efficiency across the business and also to improve conditions related to contracts with third-party suppliers to more commercial terms."

Earlier this month, Donaco had already announced layoffs and unpaid leave for its employees at the Aristo International Hotel in February due to the negative impact of the novel coronavirus.

"The impact of COVID-19 in February had a major impact on Aristotel," Donaco CEO Paul Arbuckle said in comments that were also included in the company's earnings call.

Mr Arbuckle reported that daily sponsorship of Aristo properties fell 75% month-over-month during February as a result of the company's partial closure to border crossings.

BY: 카지노사이트