The 10.82% VIP win rate at Star Vegas is way above the theoretical rate (normally accepted as 2.85%). So the casino was winning a LOT more than expected.
This partly explains the lower VIP turnover, compared to previous quarters. The punters were losing their money more quickly than usual. Once they run out, they have to stop playing.
The confusing part is this statement: "Group earnings and EBITDA decreased compared to the March Quarter due to a higher-than-expected VIP win rate at the DNA Star Vegas (Star Vegas) operation." You would expect that earnings and EBITDA would INCREASE if the VIP win rate was higher, unless it was so high that it killed the turnover (which seems to have been the case).
The best measure for the health of the business is the volume of turnover. If it's growing, then (all else being equal) more punters are coming, and they are betting more. On this measure, DNA's results are flat, at best, and this is confirmed by the visitation numbers.
They are profitable and paying off debt. But the company is owned and run by fundamentally untrustworthy people. I doubt that they will attract much attention from ASX investors.
DNA Price at posting:
3.3¢ Sentiment: None Disclosure: Not Held
