Donaco International has reported its Star Vegas venture in Cambodia “continues to rebuild” with a 30 percent rise in visitors, an average of 4,462 daily, across the first quarter of 2017.
The casino had suffered competition from the neighbouring Star Paradise venue, run by Star Vegas’ previous owners despite a non-compete agreement, which saw Donaco recently file for $120m in damages and freeze shares held by the Thai vendors.
The casino saw a 64 percent decline in rolling chip turnover during the second half of 2017, and a fall in VIP numbers due to the withdrawal of several junket operators.
However, Donaco now reports the Star Vegas is recovering from the “damaging effect of the Thai vendor’s breaches of contract and the resulting illegal competition in the Poipet area.”
“Management has been successful in signing up a number of new VIP junkets to replace those that left the property last year,” said a company statement to the Australian Securities exchange on 16 April.
A “major new VIP junket” began operations at Star Vegas on 9 February, raising VIP turnover for the month 13 percent year on year to $274m, with VIP win rate hitting 2.8 percent.
Rolling chip turnover for the first quarter hit $593m, which, though 25 percent lower than for the same period in 2016, marks a significant improvement on the H217 decline.
Furthermore, operating expenses for the quarter were down 13 percent from 2017, causing Donaco’s profits to suffer only a $5.5m dent.