Galaxy Entertainment Group Vice Chairman Francis Lui says Galaxy has managed to reduce its daily operating costs by more than 25% to around US$2.5 million between the first and second quarters of 2020 as it looks to navigate the COVID-19 pandemic.
Speaking with media following the announcement of GEG’s 2Q20 and 1H20 financial results on Thursday, Lui said the company was well positioned to emerge from the pandemic following the resumption of the Individual Visit Scheme this week, pointing to its strong balance sheet and effective cost cutting measures in recent months.
“Earlier we said that for Q1, every day we spent about US$3.4 million per day. In Q2 that has come down to 2.5 million, so I think we have already made improvements,” Lui explained.
“We will continue to make efforts so that we will be able to maintain the working standards for our staff and so we can better manage our finances.
“As for when we will be able to break even I think it is too early to say. IVS only resumed yesterday meanwhile we have to do a good job in terms of containing the pandemic to ensure there will not be any more outbreaks. We are still, in the long term, optimistic about Macau.”
GEG made particular note of its cash strong position during Thursday’s results announcement – including HK$49.8 billion (US$6.4 billion) in cash and liquid investments and HK$43.6 billion (US$5.6 billion) of net cash – with Lui insisting the company won’t be looking to bolster liquidity via the issuing of debt.
However, he did push for the Macau government to utilize the SAR’s standing as “one of the safest cities in the world” to encourage tourists to return sooner rather than later.
“I hope that with the resumption of IVS we can have more promotion of Macau as a tourist destination,” he said. “For 137 days we have not had a single new case [of COVID-19] and it’s because of this achievement that the Chinese government has decided to reinstate the IVS.
“With the lead of the [Macau] government I hope we can stage more mega events so that customers will know Macau is one of the safest cities in the world and will be able to come and participate in these events staged in Macau. I think Macau still has its own competitive advantage.
“I do think Macau is one of the safest cities in the world. Other cities have not really managed to contain the pandemic so well. Customers may see Macau as their first choice, I believe.”
