Galaxy recovers to HK$1 bln in net earnings during Q4 2020

Galaxy Entertainment Group’s reported a 207 per cent quarter-to-quarter increase in Adjusted EBITDA to some HK$1 billion (US$128.9 million) for the last quarter of last year, moving out of the red after negative HK$943 million in the previous quarter, the gaming concessionaire’s latest financial report indicated.

According to GEG’s chairman, Lui Che Woo, the improvement was largely driven by an increase in visitation and continuing cost control, but with 2020 finishing with some HK$1 billion in Adjusted EBITDA.

GEG’s net revenue also went up by 229 per cent quarter-to-quarter to some HK$5.1 billion, with the year ending with some HK$12.9 billion, a 75 per cent drop from the previous year.

The group’s total gross gaming revenue reached HK$4.6 billion in the last quarter of 2020, down 68 per cent year-on-year but up 436 per cent quarter-on-quarter.

By the end of 2020, the group held some HK$46 billion in cash and liquid investments with HK$9.2 billion in total debt, including HK$8.7 billion associated with a treasury yield enhancement program and HK$0.5 billion of core debt.

“Due to our conservative financial management, the Group’s net cash as at year-end provides us with valuable flexibility in managing our ongoing operations and allows us to continue with our longer-term development plans,’ Lui noted in the report.

GEG yesterday announced that its Cotai Phase 3 expansion will gradually open by the end of this year, with a HK$13.5 billion construction granted already awarded for Phase 4

Phase 3 includes the Galaxy International Convention Center (GICC), which has already opened for event quotations and includes a 500,000 square feet 16,000-seat multi-purpose Galaxy Arena, and will be directly connected to the future Hyatt Hotel Corporation 700 rooms Andaz Hotel.

The GICC will also include 10,000 square meters of pillar-less space that can accommodate up to 7,000 delegates, a banquet event area that can hold corporate banquets up to 2,400, a grand ballroom for 1,000 guests, and a 650-seat auditorium.

Te group’s Cotai property Galaxy Macau reported a considerable performance in the last three months of 2020, with net revenue up 430 per cent quarter-to-quarter to HK$3.3 billion and some Adjusted EBITDA of HK$735 billion, a 193 per cent quarter-on-quarter jump.

Meanwhile StarWorld Macau’s Adjusted EBITDA decreased increased 167 per cent quarter-on-quarter to HK$150 million, while Broadway Macau reported some HK$16