Donaco claims strong pipeline of potential deals

Australia-listed Donaco International says it has a strong pipeline of potential deals in the leisure and gaming space around Asia, but won’t pursue any opportunities unless they provide good returns for shareholders.
In the company’s annual report, managing director Joey Lim said the potential deals play to the company’s strengths and involve boutique properties.
Donaco, which opened its luxury Aristo International resort in Lao Cai, Vietnam, in May, says it’s also monitoring developments in Hanoi, where the government is considering opening the market to locals.
However, Lim says the property is not dependent “in any way” on locals being allowed to gamble and instead is generating strong interest from Vietnamese for weddings and banquets, as only the casino floor is off limits to locals.
The company also plans to take advantage of the imminent opening of a highway between Hanoi and Lao Cai to offer packages to expatriates. Lim said the company recently opened a marketing office in the capital and expects this to be a new line of business.
Gaming revenue in Vietnam in the 2014 financial year rose 33 percent, contributing to an 80 percent gain in overall group revenue. The results mostly reflect revenue from the old Aristo property.
Net profit after tax was up 52 percent.