Galaxy Entertainment Group posts net revenue of US$259.1m for Q3

Net revenue was down 52.5 per cent year-on-year.
Net revenue was down 52.5 per cent year-on-year.

Revenue for Q3 was down 16.1 per cent quarter-on-quarter and 52.5 per cent year-on-year.

Macau.- Galaxy Entertainment Group has reported that revenue for the third quarter of the year was down 16.1 per cent when compared to the previous quarter at HK$2.03bn (US$259.10m). The figure was down 52.5 per cent year-on-year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter were negative HK$581m, compared with negative HK$384m in the preceding quarter. Net gaming revenue decreased by 33.1 per cent quarter-on-quarter to HK$821m, down 71.8 per cent from HK$2.91bn in the third quarter of 2021.

Rolling chip turnover was HK$2.78bn, down 91.7 per cent from the same period last year and down 23.7 per cent from the second quarter of this year. The quarterly mass-market table was down 67.3 per cent year-on-year and 28.4 per cent sequentially at HK$3.3bn.

Galaxy Macau was the main contributor to the group’s profitability. It recorded net income of HK$1.07bn, a decrease of 25.3 per cent from the previous quarter and of 62.2 per cent from the same period last year. Adjusted EBITDA for Galaxy Macau was negative HK$299m for the three months ended September 30, compared with positive HK$454m a year ago. 

Galaxy said the group’s balance sheet remained “liquid and healthy”. As of September 30, cash and current assets were HK$22.5bn and net cash HK$19.3bn. Aggregate debt was HK$3.2bn at the end of September, which the firm said reflected its “ongoing treasury yield management initiatives where interest income on cash holdings exceeds corresponding borrowing costs.”

Company chairman Lui Che Woo stated: “Moving onto our Q3 2022 performance, the elevated Covid-19 related travel restrictions imposed in Q2 flowed into Q3 and even resulted in the closure of casinos for 12 days during the quarter. This impacted visitation, revenue and profitability.”

About Phases III and IV of Galaxy Macau, Che Woo said: “We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests. We also continue to invest in Macau with our Cotai Phase III effectively completed and continue to move forward with Phase IV, our next-generation integrated resort, which will complete our ecosystem in Cotai.”

He added “We remain confident in the future of Macau. However, we do acknowledge that further potential outbreaks of Covid-19 may impact our future financial performance. 

“Finally, I would again like to thank the Macau Government and the health and emergency personnel who have worked so hard to ensure the safety of Macau. I would also like to thank our staff for participating in our various voluntary community programs.”

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