Thursday, August 18, 2022

Companies count the costs of Covid-19 shutdowns

Gaming companies across the Asia Pacific region are continuing to count the costs of the coronavirus-mandated shutdowns, with both Donaco International and Asia Pioneer Entertainment warning of an impact on business.

Hong Kong-listed gaming supplier, APE, says that the shutdown of the casinos in Cambodia and the Philippines may impact the ability of two companies to which it had leased equipment to pay the rental according to the payment schedules. 

The amount due from GLIMEX in the Philippines and Siam Star Leisure in Cambodia amounts to about HK$2.3 million.

“The directors expect that the epidemic and suspension may have a material adverse impact on the group’s financial performance and unaudited interim results of the group for the six months ended 30 June 2020, it said in a statement to the Hong Kong Stock Exchange.

Australia-listed Donaco International, which operates a casino in Vietnam and one in Cambodia, said it was experiencing a cashburn of about US$800,000 to $900,000 a month due to the closures.

Donaco said it has a cash balance of about $11.6 million and the board is confident that the business can be sustained for an extended period of closures and that it will be able to source capital as needed.

“The situation we are facing with the Covid-19 pandemic is unprecedented and unfortunately we have had to take some drastic measures with our staff, including redundancies and pay cuts,” Chairman Mel Ashton said. “This is to ensure that the business stays afloat and will be in a healthy financial position when we eventually rebuild the team and restart operations.”

Donaco operates the Star Vegas in Poipet, Cambodia and the Aristo International in Lao Cai, Northern Vietnam. 

Analysts at TA Securities have also weighed in on the potential costs to Genting Singapore after the closure of Resorts World Sentosa.

It sees a 23.6 percent reduction in Genting Singapore’ earnings for FY20 if without any massive cost reductions.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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