Gaming | GEG sees revenue grow to HKD10.7b in H1

Galaxy Entertainment Group (GEG) posted a net revenue of HKD10.7 billion in the first half (H1) of the year, a surge of 71% year-on-year, with Adjusted EBITDA of HKD2.0 billion.
The group’s total gross gaming revenue (GGR) on a management basis in H1 was HKD9.7 billion, up 62% year-on-year as total mass table GGR was HKD5.9 billion, up 100% year-on-year and total VIP GGR was HKD3.5 billion, up 26% year-on-year, GEG said in its quarterly results announcement yesterday.
Total electronic GGR was HKD333 million, up 27% year-on-year.
Meanwhile, GEG’S non-gaming performance has improved in the second quarter (Q2) this year due to “a strong performance in retail, which bodes well for the overall recovery prospects for Macau,” the group said in its quarterly results announcement yesterday.
The net revenue of HKD5.6 billion in Q2 improved relative to HKD1.2 billion in the same quarter in 2020 and HKD5.1 billion in Q1, 2021.
As of 30 June 2021, cash and liquid investments of the group were HKD43.0 billion and net cash was HKD31.6 billion. Total debt was HKD11.4 billion at 30 June 2021, including HKD10.9 billion associated with the group’s treasury yield enhancement program and HKD0.5 billion of core debt.
“This provides us with valuable flexibility in managing operations and supporting our development initiatives. Given the ongoing impact of Covid-19, today the Board of Directors has decided not to declare a dividend,” said GEG chairman Lui Che Woo.
Galaxy Macau improved the most in net revenue during the H1, recording HKD7.2 billion, up 88% year-on-year, while StarWorld Macau recorded HKD1.9 billion, a surge of 80% year-on-year.
Broadway Macau had revenue of HKD29 million, versus its HKD65 million revenue in H1 last year.
In the same announcement to the press, Lui gave development updates that reiterated the opening of Raffles at Galaxy Macau in early 2022, featuring an all-suite tower, with approximately 450 rooms.
“We intend to follow this with the opening of the Galaxy International Convention Center and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets. [Additionally], we are proceeding with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai,” he said.
GEG, together with Monte-Carlo SBM from the Principality of Monaco and its Japanese partners, remains interested in bringing its brand in Japan despite the pandemic crisis.
Regarding its development plan in Hengqin, the group is awaiting updates from the government and would “welcome the opportunity to contribute to the evolving role of Hengqin in Macau’s future development.”
GEG said that it continues to remain confident in the medium to longer term outlook for Macau. “In Q2 the Macau market experienced its fourth consecutive quarter of GGR growth despite sporadic outbreaks of Covid-19 in mainland. We are driving every segment of our business by enhancing operational efficiencies and exercising prudent cost control especially under the current market conditions,” the statement read.