Galaxy Entertainment Group Q2 revenue down 56%

August 19, 2022 Macau Earnings & Filings Industry Updates

Galaxy Entertainment Group (GEG) has reported revenue of HK$2.4bn (US$310m) for the second quarter of 2022, a 56% year-on-year decline, and a 41% quarter-on-quarter decline.

Adjusted EBITDA for the period was negative HK$384m, versus HK$1.13bn in the prior-year period.

The operator also published its results for 1H 2022, reporting a 39% decline in revenue to HK$6.5bn, and a 90% decline in adjusted EBITDA to HK$191m. Net loss attributable to shareholders for the period was HK$850m, versus profit of $947m in 1H 2021.

Galaxy Macau Q2 2022 revenue amounted to HK$1.4bn, down 62% from Q2 2021, with 1H revenue down 38% year-on-year to HK$4.5bn.

StarWorld Macau Q2 revenue was down 76% year-on-year to HK$220m, with 1H revenue down 67% year-on-year to HK$644m.

And Broadway Macau posted revenue of $15m for Q2 2022, compared to HK$14m in Q2 2021. The venue reported 1H revenue of HK$31m, which was a 7% increase from the prior-year period.

As of 30 June 2022, cash and liquid investments were HK$29bn, with net cash of HK$20.3bn, and core debt of HK$0.3bn.

GEG pointed to the impact of travel restrictions in Macau amid the Covid-19 pandemic, saying the “performance of tourism and gaming industries were adversely impacted by travel restrictions and a Covid-19 outbreak in Macau during Q2 and 1H 2022.

“In Q2 2022, due to increased cases of Covid-19 and the associated travel restrictions and quarantine rules, visitor arrivals to Macau were 1.6 million, down 27% year-on-year and down 15% quarter-on-quarter.

“Visitor arrivals from the Mainland were 1.4 million, down 29% year-on-year and down 18% quarter-on-quarter. Overnight visitors were 0.5 million, down 49% year-on-year and down 14% quarter-on-quarter.”