Galaxy net revenues cut 61 pct y-o-y in Q1

Gaming operator Galaxy Entertainment Group (GEG) net revenue dropped by 61 per cent year-on-year in the first three months of this year to about HK$5.1 billion (US$658 million), while Adjusted EBITDA was cut down by 93 per cent year-on-year to some HK$283 million, the group’s latest financial report indicates.

‘Q1 2020 has been a very difficult period for the community and businesses globally due to the COVID-19 pandemic […] The introduction of immigration and quarantine restrictions has adversely affected visitations to Macau and impacted virtually all businesses in Macau the gaming concessionaire indicated,’ the group’s chairman, Lui Che Woo said in the financial report.

GEG’s Cotai property, Galaxy Macau, saw its net revenue for the quarter decreased 62 per cent year-on-year to HK$3.5 billion, with Adjusted EBITDA falling 89 per cent to HK$329 million and an average room occupancy of 39 per cent.

Meanwhile, Starworld Macau reported a 66 per cent year-on-year fall in net revenues to some HK$1 billion, and also an 89 per cent drop in Adjusted EBITDA to HK$104 million, but with a room occupancy rate of 42 per cent.

The group added that ‘at this point in time it is difficult to quantify the full-year financial impact of the virus’, but that the company remained ‘well capitalised’ to face it.

‘Having said that, we are doing our best to adjust our operations to the current business environment and effectively control costs,’ Lui added.

According to the company, virtually all team members made voluntary contributions with Board of Directors waiving their Director’s fee and management taking part in a non-paid leave program, with GEG underlining it had not engaged in ‘redundancies’.

Meanwhile, the group has continued with its Cotai development of Phases 3 & 4, which was temporarily impacted by a fatal work accident.

‘We will try to maintain our development target, however, due to COVID-19, development timelines may be impacted. At this point we cannot quantify the impact but we will endeavor to maintain our schedule,’ the group noted.

The company also maintained a special dividend payment of $0.45 per share on 24 April 2020.