Galaxy Entertainment posts net revenue of HK$6.5bn for H1

The company says its balance sheet remains strong amid a decline in revenue in the first half.

Macau.- Galaxy Entertainment Group has shared its financial results for the first half of the year. Revenue was down 39 per cent year-on-year to HK$6.5bn.

The company reported adjusted EBITDA of HK$191m, down 90 per cent year-on-year, and a net loss attributable to shareholders of HK$850m, versus a profit of HK$947m in the first half of 2021.

Adjusted EBITDA for gaming was up by approximately HK$27m. As of June 30, cash and liquid investments were HK$29.0bn and net cash (including liquid investments) was HK$20.3bn. Given the ongoing impact of Covid-19, the board decided not to declare a dividend. 

Galaxy Macau’s net revenue was down 38 per cent year-on-year to HK$4.5bn. Adjusted EBITDA was HK$536m, down 68 per cent year-on-year.

StarWorld Macau’s net revenue was HK$644m, down 67 per cent year-on-year. Adjusted EBITDA was HK$216m. Broadway Macau’s net revenue was up 7 per cent year-on-year to HK$31m. Adjusted EBITDA was HK$36m.

Gross gambling revenue in the first half of the year was HK$4.8bn, down 51 per cent when compared to last year. Mass GGR was HK$3.8bn, down 35 per cent year-on-year and rolling chip GGR was down 79 per cent to HK$719m. Electronic gaming volume GGR was down 29 per cent year-on-year to HK$238m.

Chairman Lui Che Woo said: “A number of cities across China experienced travel restrictions for a significant part of the first half of 2022. These restrictions on inter-provincial travel impacted visitation to Macau and in turn, adversely impacted both revenue and profitability. 

“In addition, Macau experienced a Covid-19 outbreak and the Macau Government requested suspension of all industries and commercial activities from 11 to 22 July 2022 which further impacted visitation, revenue and profitability.”

He said Galaxy was “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.”

Che Woo added: “Going forward in the medium to longer term, 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.”