Galaxy posts US$121.6m in net losses for Q3
Net revenue dropped by 88 per cent compared to last year.
Macau.- Casino operator Galaxy Entertainment Group has posted net losses of HK$943m (US$121.6m) for the third quarter, as net revenue dropped by 88 per cent year-on-year to HK$1.5bn (US$193.4m).
Al the same, the results represented a 34 per cent rise in revenues from the previous quarter.
According to the group’s chairman, Lui Che Woo, Galaxy has continued to focus on effective cost control versus revenue generation and remained optimistic about improved visitation in the remainder of the year.
Lui noted that the group’s balance sheet remained strong with HK$43.2bn in cash at the end of Q3.
He said: “This provides us with valuable flexibility in managing operations and supporting our development initiatives […] Whilst it is pleasing to see a gradual increase in visitor arrivals to Macau with the reinstatement of IVS, we would expect a gradual increase in visitor arrivals as well as revenue over the coming quarters”.
The group’s largest property, Galaxy Macau, registered a 101 per cent rise in net revenue from July to September, reaching HK$626 million, but saw HK$788m in negative adjusted EBITDA.
The company’s five hotels reported an occupancy rate of 20 per cent.
The group has progressed with its HK$50bn Galaxy Macau Phases 3 and 4 development plans and intends to proceed with opening.
Phase 3, set to open in 2021, will include a casino, a 16,000-capacity arena, 37,161 square metres of meetings incentives, conferences and exhibitions (MICE) space and an Andaz hotel, part of the Hyatt Hotels Corp.
