Galaxy Entertainment Group Chairman Dr Lui Che Woo says the company is pleased with its 1Q21 financial results, which saw gaming revenue grow by 5.6% compared with the December quarter.
The Macau gaming concessionaire reported net revenue of HK$5.1 billion in Q1, up 1% year-on-year and flat quarter-on-quarter, with gaming revenue of HK$3.86 billion only slightly below the HK$4.05 billion in gaming revenue achieved in the first quarter of 2020.
Group-wide Adjusted EBITDA was down 15% sequentially from HK$1.01 billion in Q4 to HK$859 million but up 204% on a year ago with Dr Lui noting that results were impacted by a seasonal decline in GEG’s Construction Materials Division.
“We are pleased with the outcome given that 4Q20 included a one-off HK$100 million COVID-19 insurance claim,” he said. “In addition, the Construction Materials Division is historically seasonal softer in the first quarter compared to the other three quarters.
“The Construction Materials Division contributed HK$156 million in 1Q21 compared to HK$326 million in 4Q20. This is an annual seasonal occurrence and we expect an improvement in 2Q21.”
GEG’s flagship property Galaxy Macau reported a 3.0% sequential improvement in net revenue to HK$3.42 billion and 5.3% gain on gaming revenue to HK$2.88 billion. Adjusted EBITDA of HK$764 million was up 132% year-on-year and up 4% quarter-on-quarter.
StarWorld Macau saw a 6.1% sequential increase in net revenue to HK$1.0 billion with gaming revenue rising 6.3% to HK$972 million and Adjusted EBITDA up 13.3% to HK$170 million.
Mass-only property Broadway Macau saw a very slight decrease in net revenue to HK$15 million.
Analysts escribed Galaxy’s 1Q21 results as being largely in line with expectations, with the recovery trajectory still lengthy despite a strong Golden Week holiday period earlier this month.
“Management noted Labour Week holiday was strong, led by Premium mass, which was highlighted by strong luxury sales and +80% hotel occupancy with VIP only 20-30% of 2019 levels,” said Jefferies Research analyst Andrew Lee.
“Despite the traditional post-holiday lull, management continues to expect a ‘gradual recovery’ with the opening of Raffles hotel in its Phase 3 development likely end-2021/early-2022.”
