Hot-handed VIPs at Donaco’s Vietnam casino take a bite out of earnings

Asian casino operator Donaco International says lucky high rollers at its Vietnamese casino are playing havoc with its fiscal year results.

In a filing with the Australian Stock Exchange on Wednesday, Donaco says its normalized earnings – so named because they smooth out the variance in VIP gambling – for the fiscal year ending June 30 are on track to meet analysts’ expectations of A$90m to $95m (US $65m to $68.6m).

However, a subpar theoretical VIP win rate of 1.62% at Donaco’s Aristo International Hotel in northern Vietnam mean actual earnings over the 10 months ending April 30 are US $7.3m below the normalized result.

Despite the VIP hot streak, Donaco says revenue at the Aristo is up 13% over the same period last year. Visitor numbers are up 61%, pushing hotel occupancy up 20 points to 83% which helped drive room revenue up 41%.