Galaxy’s net revenue plummets 50% in Q3

Local resort operator Galaxy Entertainment Group (GEG) has recorded a loss of HKD581 million in its adjusted EBITDA for the third quarter of this year.

In Q3 this year, GEG posted a net revenue of HKD2 billion, down 52% year-on-year and down 16% quarter-on-quarter. In the same quarter last year, the amount was HKD503 million but it plunged to negative HKD384 million in Q2 this year.

Property-specific figures from Galaxy Macau are negative at HKD299 million, StarWorld Macau negative at HKD169 million and Broadway Macau negative at HKD16 million.

The company has followed the Macau government’s call to use Broadway Macau intermittently as a special quarantine hotel.

GEG added that in the latest twelve months, the adjusted EBITDA was HKD653 million, down 81% year-on-year and down 62% period-on-period.

During Q3 this year, GEG proved unlucky in its gaming operations which saw adjusted EBITDA decrease by approximately HKD20 million.

GEG’s total gross gambling revenue (GGR) on a management basis in Q3 this year was HKD900 million, down 75% year-on-year and down 34% quarter-on-quarter. Mass GGR was HKD800 million, down 65% year-on-year and down 32% quarter-on-quarter. VIP GGR was HKD56 million, down 95% year-on-year and down 63% quarter-on-quarter. Electronic GGR was HKD64 million, down 57% year-on-year and down 15% quarter-on-quarter.

GEG’s overall financial condition was described as “healthy and liquid”.

As at September 30 this year, cash and liquid investments totaled HKD22.5 billion and net cash equaled HKD19.3 billion. As at the same date, GEG had debts of HKD3.2 billion and said the situation “primarily reflects ongoing treasury yield management initiatives with minimal core debt of HKD0.3 billion.”

Regarding future development, GEG said it would “align the opening of Raffles at Galaxy Macau with prevailing market conditions, followed by the opening of Galaxy International Convention Center (GICC) and Andaz Macau, while proceeding with the construction of remaining phases.”

In addition, GEG promised that Phases 3 and 4 would “have a strong focus on non-gaming [elements], primarily targeting MICE, entertainment, family facilities,” but gambling elements will still be included.