Galaxy Entertainment Group says it has begun the long road to recovery after recording a 34% quarter-on-quarter increase in group-wide net revenue to HK$1.55 billion (US$200 million) in 3Q20, up from HK$1.15 billion (US$148.3 million) in the second quarter.
The rising revenues, aided by eased border restrictions between Macau and mainland China and the resumption of the Individual Visit Scheme for residents of Guangdong Province in August, helped reduce GEG’s Adjusted EBITDA loss from HK$1.37 billion (US$176.7 million) in 2Q20 to HK$943 million (US$121.6 million). Adjusted EBITDA in the same period last year was HK$4.11 billion (US$530.1 million).
GGR win for the quarter fell 94% year-on-year but was up 79% quarter-on-quarter to HK$867 million (US$111.8 million), primarily bolstered by its mass gaming segments. Mass GGR grew 160% quarter-on-quarter to HK$359 million (US$46.3 million), VIP by 50% to HK$472 million (US$60.9 million) and EGM GGR by 12% to HK$36 million (US$4.6 million) – all down by between 93% and 95% year-on-year.
“During this period of low revenue, we have continued to focus on effective cost control versus revenue generation,” said GEG Chairman Lui Che Woo.
“However, it is important not to cut costs excessively and therefore adversely impact our renowned ‘World Class, Asian Heart’ service standards and customers experience.
“Whilst it is pleasing to see a gradual increase in visitor arrivals to Macau with the reinstatement of IVS, we would expect a gradual increase in visitor arrivals as well as revenue over the coming quarters.”
GEG’s flagship property, Galaxy Macau, saw its net revenue increase 101% quarter-on-quarter to HK$626 million (US$80.7 million)including a 68.7% increase in GGR win to HK$555 million (US$7.1 million). Adjusted EBITDA at Galaxy Macau, which saw hotel occupancy of 20% for the three month period, was a loss of HK$788 million (US$101.6 million) versus a loss of HK$1.18 billion (US$152.2 million) in 2Q20.
StarWorld Macau saw its net revenues rise 146% sequentially to HK$199 million (US$25.7 million) with GGR win up from HK$103 million (US$13.3 million) to HK$257 million (US$33.1 million).
Net revenues at Broadway Macau remained largely flat versus 2Q20 with GGR win also stable at HK$1 million (US$129,000).
