Asia Pacific leisure and entertainment business Donaco International Ltd (ASX: DNA) has reported an after tax net loss of $124.5 million for FY18 due to a previously-flagged $143.9 million impairment charge.
Stripping out the impairment – related to the Star Vegas casino license – the group generated an underlying NPAT of $18.3 million and EBITDA of $42.4 million – as consistent with its April's guidance.
According to Donaco CEO Joey Lim the group is pursuing legal avenues over the Star Vegas casino impairment due to breaches of non-compete clauses.
But Lim says the "balance sheet remains strong" with debt to equity reducing to 6%, but its result revealed a net revenue drop out of Star Vegas and Aristo International.
Entertainment stock big wig Aristocrat Leisure Limited (ASX: ALL) shares are up of late, although the company is not due to report this season, with its preliminary report not due out until November.
Crown Resorts Ltd's (ASX: CWN) share price will be one to watch as the group takes on a NSW Government agency over its new casino at Barangaroo.
