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.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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