Galaxy Entertainment Group reported a loss attributable to shareholders of HK$3.4 billion (US$433 million) in 2022, down from a HK$1.3 billion (US$166 million) profit in 2021 despite recording significant sequential improvement in the December quarter.
Publishing its 4Q22 and FY22 financial results overnight, GEG revealed net revenue of HK$11.5 billion (US$1.47 billion) for the year, down 42%, while Adjusted EBITDA was a loss of HK$600 million (US$76 million). This included Galaxy Macau printing positive EBITDA of HK$295 million (US$38 million) but StarWorld Macau falling to a HK$527 million (US$67 million) EBITDA loss and Broadway Macau a HK$62 million (US$7.9 million) EBITDA loss.
Despite this, the company showed sequential improvement in the three months to 31 December 2022, with net revenue of HK$2.9 billion (US$370 million) down 39% year-on-year but 43% higher quarter-on-quarter.
The 4Q result included gross gaming revenue of HK$1.8 billion (US$229 million), up 99% on the September quarter, with mass GGR of HK$1.6 billion (US$300 million) – down 48% year-on-year but up 97% quarter-on-quarter – and VIP GGR of HK$148 million (US$19 million), down 79% year-on-year and up 164% quarter-on-quarter.
Adjusted EBITDA loss of HK$163 million (US$21 million) compared with a HK$1.04 billion (US$133 million) gain in 4Q21 but narrowed the HK$581 million (US$74 million) loss recorded in Q3.
GEG said it played unlucky in gaming operations, which decreased its Adjusted EBITDA by around HK$40 million (US$5.1 million).
By property, Galaxy Macau saw its GGR more than double quarter-on-quarter to HK$1.56 billion (US$292 million) in 4Q22, while StarWorld recorded a 61% increase to HK$241 million (US$31 million). Broadway Macau recorded net revenue of HK$19 million (US$2.4 million), up 36% year-on-year and 90% quarter-on-quarter, while City Clubs net revenue of HK$20 million (US$2.5 million) was down 20% year-on-year and up 5% sequentially.
“Macau like the rest of the world continued to experience the impact of COVID-19 throughout 2022, with sporadic outbreaks in Mainland China, Macau and Hong Kong and the subsequent travel and quarantine restrictions impacting visitor arrivals,” said GEG Chairman, Dr Lui Che Woo.
“I am pleased to report that in early 2023 all the travel restrictions were lifted and Macau is well positioned to welcome Mainland and international visitors in 2023.
“We are pleased with the reopening of borders in early 2023. Macau has experienced solid demand and associated revenue and we were particularly encouraged by the performance over the Chinese New Year Golden Week. We are hopeful for a sustainable recovery and remain cautiously optimistic.”
