Galaxy Entertainment Group revenue down 41% for Q2

Revenue for Q2 came in at HK$2.4bn (US$540m) due to the impact of the Covid-19 outbreak in Macau.

Macau.- Galaxy Entertainment Group has reported that revenue for Q2 was down 41 per cent quarter-on-quarter from HK$4.1bn to HK$2.4bn (US$540m). The figure was also down 56 per cent when compared to the second quarter of 2021.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter were negative HK$384m. In Q2 2021, EBITDA was positive at HK$1.13bn and in the first quarter, EBITDA came in at HK$575m (US$73.3m).

Galaxy Entertainment’s resort on Cotai, Galaxy Macau, posted net income of HK$1.44bn, down 62.3 per cent year-on-year and down from HK$3.08bn in the first quarter. Galaxy Macau’s second-quarter adjusted EBITDA was negative at HK$188m. This compares with EBITDA of HK$924m last year and HK$724m in the first quarter of this year.

The casino operator reported net revenue of HK$6.52bn for the first half of the year. That figure was down 38.8 per cent year-on-year. Net gaming revenue fell by 47.3 per cent year-on-year to HK$4.13bn. The company posted a net loss of HK$850.5m for the period.

In July, casinos in Macau were ordered to temporarily shut for two weeks. This and the general lack of tourists led Macau GGR to fall 83.9 per cent month-on-month in July from MOP2.48bn to MOP398m (US$49.2m).

Galaxy said the group’s balance sheet remained “liquid and healthy”. As of June 30, cash and current assets were HK$29bn and net cash HK$20.3bn.

The company chairman, Lui Che Woo, stated: “During the quarter, we optimized our City Club operations and ceased business at Rio Casino and President Casino. All gaming-related staff have been reassigned to our other properties.    

“Moving on to our development update, 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.”

Cotai Phase III is to feature 1,500 hotel rooms, casino space, a 16,000-capacity arena, and 400,000 square feet (37,161 square metres) of meetings, incentives, conferences and exhibitions space. For Phase IV, the company has awarded a HK$2.24bn (US$285.4m) subcontract to Far East Facade (Macau) Ltd, a wholly-owned subsidiary of China State Construction Development Holdings, to build the façade of the complex.

Woo added: “We are well positioned to compete for one of Macau’s gaming concessions, given our track record of introducing innovative non-gaming elements into our resorts, our strong operational history, significant investment into Macau’s economy and our substantial CSR efforts including supporting SMEs. We look forward to the completion of the concession bidding process by year-end.”