Coronavirus: Galaxy Macau concerned about financial impact

Casino operator Galaxy Entertainment Group board expects the Coronavirus outbreak to hit revenues and profits in 1Q20.

Macau.- Galaxy Entertainment Group (GEG) Vice-Chairman, Francis Lui, has said measures to prevent the spread of Coronavirus will negatively impact first-quarter financial results.

“There was 15-day suspension when there were no clients and of course we are impacted. Even when we resumed we had to build from zero up. For the first quarter there will be an impact but we wanted to see the epidemic controlled as soon as possible,” Lui said during a conference call to analysts.

Lui did not criticise measures such as the recent 15-day forced casino closure and said he considered such steps as necessary to contain the spread of Coronavirus.

“In the past 22 days, there have been no confirmed cases in Macau […] The Chief Executive was correct and we support this decision,” Lui added.

GEG’s CFO, Robert Drake, was also present during the webcast and said it will take time for operations to “ramp up” following the closure. Neither he nor Lui commented on what the financial impact would be.

“It is very difficult for us to foresee the impact on our profits at this point in time, but it won’t be small […]. However, in mainland China the situation seems to be stabilizing […] if that’s the case in the short-term, and if package tours and IVS visas [are allowed again], then I’m confident we will be able to resume the growth pace,” Lui added.

GEG recorded a 6 per cent year-on-year drop in net revenues to HK$51.9 billion in 2019.