Donaco owns strategically located, high quality gaming assets in Cambodia and Vietnam. These provide geographic diversification, serving the Thai and Chinese tourist markets. Both properties benefit from favourable tax rates and border zone advantages (for example, visitors from the target market do not need visas, and can use their home currency).
The acquisition of Star Vegas Resort & Club on 1 July 2015 has led to a transformational increase in the size and scale of Donaco, providing strong accretion in earnings per share and substantial diversification benefits. This represents the first step in Donaco’s strategy of rolling up profitable boutique leisure and hospitality businesses in the Asia-Pacific region.
Initiatives are in places to drive growth from existing assets, including expansion of gaming facilities, controlling operating costs, increasing asset utilisation and increasing local visitation.
Donaco’s strategy is to take advantage of the demand for leisure and entertainment in the Asia Pacific region, and to leverage the experience of the Board and management in the gaming sector. This will complement the growth at the expanded casinos in both Cambodia and Vietnam, and provide for diversification.