Donaco report profits down due to vendor breach

Company News

by Rachael Jones

Leisure and entertainment business Donaco (ASX:DNA) reported statutory NPAT loss of $124.5 million which includes the previously announced $143.9 million non-cash impairment charge in the value of the Star Vegas casino license, following the vendor’s breaches of contract.

Underlying net profit for the group was $18.3 million before non-recurring items.

Revenue declined to $92.6 million from last year’s $136.4 million.

They report that revenue at Star Vegas was significantly impacted by the breach of contract by the vendor, and subdued domestic demand in Thailand.

And the company has recorded EBITDA of $42.4 million down on last year’s $65.3 million.

No FY18 dividend is payable, due to the impairment charge.

Shares in Donaco (ASX:DNA) is trading 2.63 per cent lower to 18 cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.