Galaxy Entertainment Group’s (GEG) adjusted EBITDA in the first quarter was HKD575 million, down 33% year-on-year and down 45% from the previous quarter, according to an earnings report released by the gaming operator yesterday.
The group posted net revenue of HKD4.1 billion in the first quarter of this year, down 20% year-on-year and 14% quarter-on-quarter.
“The decrease in adjusted EBITDA is a result of recent outbreaks of Covid-19 in greater China. This resulted in [a] tightening [of the] visitation policy to preserve public health and safety which, unfortunately, adversely impacted visitation to Macau and, in turn, revenue and profitability,” the group’s chairman Lui Che Woo said in the statement.
Although the group experienced a modest uptick in patronage over the May Labor Day Holiday, GEG acknowledged that it remains well below pre-pandemic levels. The group, however, believes that this bodes well for the future recovery of Macau, as it signals pent-up demand for leisure, tourism and travel.
Galaxy Macau saw Q1 net revenue of HKD3.1 billion, down 10% year-on-year and down 4% from the previous quarter, while StarWorld posted net revenue of HKD424 million, down 58% year-on-year and 37% quarter-on-quarter.
Broadway Macau, on the other hand, recorded an uptick of 7% year-on-year, with revenue of HKD16 million, an increase of 14% from the previous quarter.
The group’s total GGR on a management basis in Q1, 2022 was HKD3.4 billion, down 29% year-on-year and 13% quarter-on-quarter. Mass GGR was HKD2.7 billion, down 7% year-on-year and 12% from the previous quarter.
Currently, the group is focused on the development of its Phase 4, which is already under way, following the completion of Phase 3.
“We see the premium market evolving, with this segment preferring higher quality and more spacious rooms. Cotai Phase 4 is an integrated resort for the next generation, which will complete our ecosystem in Cotai,” the group said.