Galaxy Entertainment Group today (Tuesday) posted a total of HK$943 million (US$121.6 million) in net losses for the third quarter, as net revenue dropped by 88 per cent year-on-year to some HK$1.5 billion.
Despite the negative results in its in negative earnings before taxes, interest, amortization and depreciation (EBITDA), Galaxy still pointed out a 34 per cent rise in revenues from the previous quarter.
The group’s chairman, Lui Che Woo, indicated in the gaming operator’s latest financial report that during this period of low revenue, Galaxy has continued to focus on effective cost control versus revenue generation and remained optimistic for improved visitation until the end of the year.
Lui also noted that the group’s balance sheet remained ‘strong’ with HK$43.2 billion in cash at the end of Q3 and liquid investments and HK$39.7 billion of net cash.
‘This provides us with valuable flexibility in managing operations and supporting our development initiatives […] Whilst it is pleasing to see a gradual increase in visitor arrivals to Macau with the reinstatement of IVS, we would expect a gradual increase in visitor arrivals as well as revenue over the coming quarters,’ Lui noted.
The group’s largest property Galaxy Macau reported a 101 per cent rise in net revenue quarter-to-quarter between July and September, to some HK$626 million, but with some HK$788 million in negative adjusted EBITDA.
The integrated resorts’ five hotels also reported a hotel occupancy rate of only 20 per cent.
The group has progressed with the HK$50 billion Galaxy Macau’s Phases 3 & 4 development phases and plans to proceed with their planned opening.
Phase 3 – set to open in 2021, will include a casino, a large-scale arena with 16,000 seats; 37,161 square metres of meetings incentives, conferences and exhibitions (MICE) space and an Andaz hotel, a brand included in the Hyatt Hotels Corp.