Macau’s Galaxy Entertainment Group roared back to profitability in the three months to 31 December 2020, with group-wide Adjusted EBITDA rising 207% quarter-on-quarter to HK$1.0 billion versus a HK$943 million loss in 3Q20.
Although still well down on the HK$4.10 billion in Adjusted EBITDA reported for the final three months of 2019, GEG’s 4Q20 results showed stark improvement across the board on a sequential basis.
Net revenue for the quarter, although down 61% year-on-year, was up 229% quarter-on-quarter to HK$5.1 billion with GGR of HK$4.64 billion versus just HK$867 million in Q3. Mass table drop showed particularly strong gains – rising from HK$1.65 billion to HK$12.04 billion – resulting in win of HK$2.82 billion. That compared with mass win of HK$7.33 billion in 4Q19 and HK$359 million in 3Q20.
Rolling chip volume showed a 4-fold increase to HK$43.91 billion with win of HK$1.65 billion, while slot volume was HK$4.3 billion with a win of HK$178 million.
Galaxy Macau, GEG’s primary revenue source, reported a 64% year-on-year decline but 430% sequential improvement in net revenue to HK$3.3 billion, with GGR of HK$3.32 billion versus HK$555 million in Q3. Adjusted EBITDA was HK$736 million.
StarWorld Macau saw its GGR improved from HK$257 million in Q3 to HK$1.16 billion – roughly a third of the HK$3.44 billion GGR for 4Q19 – while Adjusted EBITDA was HK$150 million versus a Q3 loss of HK$223 million.
Broadway Macau recorded net revenue of HK$16 million, down 90% year-on-year and up 23% quarter-on-quarter, with an Adjusted EBITDA loss of HK$28 million.
City Clubs, meanwhile, contributed HK$8 million of Adjusted EBITDA in 4Q20, compared with HK$28 million in 4Q19 but up from HK$1 million in Q3. GGR was HK$165 million.
For FY20, GEG’s group-wide net revenue fell 75% year-on-year to HK$12.9 billion, with an Adjusted EBITDA loss of HK$1 billion and a loss attributable to shareholders of HK$4 billion.
GEG revealed it would not declare a dividend for FY20 but said it was confident in ongoing recovery as 2021 progresses.
“In the medium to longer term, we have great confidence in the future of Macau,” said GEG Chairman Dr Lui Che Woo.
“We have seen signs of early recovery post the reinstatement of IVS (Individual Visit Scheme) in late September 2020 and it may take a few more quarters for business volumes to ramp up.
“We are pleased to hear that Macau and other locations are proceeding with their COVID-19 vaccination rollout plans. We believe that when mainland and international tourists make future travel plans, health and safety will be foremost in their minds.
“We again applaud the Macau Government for their proactive leadership during the challenging pandemic crisis. Their focus is not only to ensure the health and safety of the community, but also ensuring that Macau is well positioned to attract visitors, support economic recovery and maintain the social stability of Macau.”
