Macau’s Galaxy Entertainment Group saw its gross gaming revenue fall by 72% year-on-year and 59% quarter-on-quarter to HK$1.39 billion (US$177 million) in the three months to 30 June 2022 with COVID-19 restrictions continuing to heavily impact the SAR’s casino operators.
According to information released by the company on Thursday, mass gaming contributed the majority of gaming revenue for the quarter at HK$1.17 billion (US$149 million) – down 62% year-on-year and 56% quarter-on-quarter – with rolling chip GGR of HK$153 million (US$19.5 million) down 91% compared to the same period in 2021. Electronic GGR fell by 63% on 2Q21 and 53% sequentially to HK$76 million (US$10 million).
By property, Galaxy Macau recorded GGR of HK$1.12 billion (US$143 million) with an Adjusted EBITDA loss of HK$188 million (US$24 million). This compared with Adjusted EBITDA of HK$924 million (US$118 million) in 2Q21 and HK$724 million (US$92 million) in 1Q22.
StarWorld recorded GGR of HK$211 million (US$27 million) with an Adjusted EBITDA loss of HK$158 million (US$20 million) while Broadway recorded no gaming win and an Adjusted EBITDA loss of HK$19 million (US$2.4 million).
Net revenue for the group as a whole was HK$2.4 billion (US$306 million) for the second quarter, down 56% year-on-year and 41% quarter-on-quarter, with GEG recording an Adjusted EBITDA loss of HK$400 million (US$51 million).
GEG Chairman Lui Che-woo noted that, “A number of cities across China experienced travel restrictions for a significant part of the first half of 2022. These restrictions on inter-provincial travel impacted visitation to Macau and in turn adversely impacted both revenue and profitability.
“In addition, Macau experienced a COVID-19 outbreak and the Macau Government requested suspension of all commercial activities from 11 to 22 July 2022 which further impacted visitation, revenue and profitability.”
As of 30 June 2022, Galaxy said it had cash and liquid investments of HK$29 billion (US$3.70 billion) and net cash of HK$20.3 billion (US$2.59 billion). Core debt remained at roughly HK$300 million (US$38 million).
“Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend,” Lui added.
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