Presentation -
The Half Year was a period of changes and challenges for
The period saw
This was led by the number of strategic initiatives we implemented to weather the impacts of the pandemic and provide a solid platform for growth for the business. These initiatives included the change in targeted clients as we renew our focus on attracting clientele from the local region to Star Vegas, to in turn reduce our international staff expenses, alongside continued disciplined capital management and a reduction in our costs.
We also successfully paid down the debt with our principal lender
Another milestone achieved was the successful settlement of all legal cases in relation to Star Vegas. This follows the approval received from
Therefore the completed Board and Executive team renewal strategy has given positive results, as Star Vegas and Aristo continue to operate on a limited basis.
Looking at our financials, the positive EBITDA reached was driven by a proactive cost control strategy while reducing both operating and corporate expenses.
The approval of the Star Vegas settlement from
As of the end of the period, we kept a healthy cash balance of
On the back of the COVID-19 impacts, our operating cash flow reduced to
Looking at Star Vegas specifically, the casino reopened in
While Aristo, which reopened in
During this second half of the financial year, we will continue to execute on the strategic initiatives implemented in the first six months, while keeping tight control over costs.
In January a COVID-19 outbreak occurred around the broader regional area in which Star Vegas operates, and this will likely affect
As mentioned earlier, we have executed an effective strategy during the Half Year which has led to a return to positive EBITDA.
We did everything we could during the first half to fix what had to be fixed internally, and we are now ready to move forward once the COVID-19 situation improves.
Q&A session -
Q: Is there a possibility for the Thai Government to legalise gambling in
At this stage we do not expect the Thai Government to legalise gambling in the country. As we weather the impacts of COVID-19, we will carry on our rigorous cost control strategy and prepare for when the border reopens.
Q: I refer to Note 8 of the half year accounts, when is the
The
Q: Is there a possibility for capital management once the situation normalises? What milestone needs to be hit before this happens?
We do not plan to raise funds anytime soon. We are not ruling out conducting a capital raise, but any raise we conduct will be to progress the financial growth of our business.
Q: What is different about the Star Vegas strategy today for players?
We are still adopting the same strategy for Star Vegas. However as a result of the impacts of the pandemic, we are attracting players from the local region to the casino, whilst of course keeping the safety of both our staff and players our number one priority.
Q: When does the Government of
We are following the standards and protocols provided by the governments of
We will fully reopen our casinos as and when the COVID-19 situation improves. We are confident that the situation will improve as the proliferation of vaccines rapidly grows globally during the second half of 2021. For instance, in
Q: The stock is trading materially below fair market value from its casinos - would management consider selling Aristo in order to return shareholder value to investors?
We have made considerable progress in the last half year. For us Aristo is a casino with a lot of potential and we are confident that once borders reopen the situation will stabilise. We are not considering selling Aristo at this stage, and we would only consider a sale of the casino if it provided superior value for
Q: Does the company still have junket partners that it can rely on when the situation normalises at Star Vegas?
Yes we have many junket operators that wish to partner with us once the situation stabilises at Star Vegas.
Q: What happened with the slot business at Star Vegas, can we win that back?
There were a number of changes to slot machines provided which were not well received by clients so the new management has restructured the machines to match the requirements of our target clients, and we believe that as a result of this, our slot machine business will improve.
Q: Do you intend to repay all of the
Yes, as per schedule
Q: If the company can return to profitability in the coming years, what are management's priorities with the resulting cash flow? Will it be used for dividends, buybacks, new developments, acquisitions, etc.?
At this stage we are investing back into the business. We are managing our liquidity position during this volatile period, and keeping tight control over our operating costs, whilst creating shareholders value.
Q: With regards to the trade payable of
From the trade payable of
Q: How do management stay ahead of competitions and have competitors closed down since last year?
Every casino in the region is in a similar situation to us, and is operating on a limited basis. We see
About
Contact:
Investors
Porntat Amatavivadhana
porntat@donacointernational.com
Media
+61 420 945291
shane.murphy@fticonsulting.com
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