Galaxy Entertainment revenue down 20% for Q1
Galaxy Entertainment attributed the decrease in revenue to the rise in Covid-19 cases in mainland China.
Macau.- Galaxy Entertainment Group shared its financial results for the first quarter of the year. It’s reported that revenue was down 20 per cent year-on-year to HK$4.1bn (US$520m). The figure was also down 13.7 per cent when compared to the fourth quarter of the year 2021.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at HK$575m (US$73.3m), down 33.1 per cent year-on-year and down 44.9 per cent quarter-on-quarter. Net gaming revenue plunged 24.8 per cent to HK$2.90bn when compared to last year and 10.9 per cent sequentially.
For VIP rolling chip results, Galaxy Entertainment posted HK$17.9bn, down 67.6 per cent year-on-year and 30.5 per cent when compared to the fourth quarter of 2021. Mass-market results were down 18.3 per cent year-on-year and 17.4 per cent sequentially at HK$9.46bn.
Electronic gaming volume stood at HK$4.38bn, up 4.4 per cent when compared to last year but down 1.4 per cent from the prior quarter.
GEG chairman Dr Lui Che Woo, attributed the decline in the first quarter adjusted EBITDA to Covid-19 in mainland China.
He added: “Whilst we experienced a modest uptick in visitation over the May Labor Holiday, we do acknowledge it still remains well below pre-pandemic levels.
“During the May Labour Holiday, our integrated resorts were more active, including our hotels and restaurants among others. We believe that this bodes well for the future recovery of Macau as it signals pent up demand for leisure, tourism and travel.”
Woo said Galaxy Macau’s Phase 3 expansion complete and that the opening would be aligned “with prevailing market conditions”.
He said Galaxy Entertainment Group submitted a proposal to authorities extend its concession for another six months. Macau’s current licences were to expire in June, but in February Lei Wai Nong, Macau’s secretary for economy and finance confirmed that licences would be extended until December 31 pending a new public tender.
