Galaxy reports healthier revenues in Q3 as Macau continues recovery

Things are getting better for the Galaxy Entertainment Group (GEG). The casino operator reported a 34% increase in revenue for Q3, rising to HK$1.55 billion ($200 million) from HK$1.15 billion ($148.3 million) in the previous quarter.

The improvement came thanks to a slowly recovering Macau, which has eased border travel with mainland China. That reduced Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) loss from HK$1.37 billion ($176.7 million) in the second quarter to HK$943 million ($121.6 million). Adjusted EBITDA for Q3 2019 was HK$4.11 billion ($530.1 million).

While Gross Gaming Revenue (GGR) improved 79% quarter over quarter to HK$867 million (US$111.8 million), that’s still a 94% drop from 2019. But the small improvement mostly came from mass GGR, which saw a 160% growth from the previous quarter to HK$359 million ($46.3 million). VIP Also improved from HK$472 million ($60.9 million), a 50% growth, and EGM GGR also went up by 12% to HK$36 million ($4.6 million). Still terrible compared to last year, but one step at a time.

“During this period of low revenue, we have continued to focus on effective cost control versus revenue generation,” said Galaxy Chairman Lui Che Woo. “However, it is important not to cut costs excessively and therefore adversely impact our renowned ‘World Class, Asian Heart’ service standards and customers experience.”

“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,” the chairman added.

Galaxy’s results are in line what we’ve already learned for the rest of Macau. The Gaming Inspection and Coordination Bureau (DICJ) indicated in mid-October that mass gaming saw a 51% quarter-over-quarter improvement, something Galaxy far outpaced. But a general lack of tourists continues to keep the region from regaining its former glory. Something GEG saw at each of its properties.

Galaxy Macau saw net revenue improve 101% quarter over quarter, but only had 20% hotel occupancy. That resulted in a net loss of HK$788 million ($101.6 million), slightly better than the a loss of HK$1.18 billion ($152.2 million) in Q2 2020. StarWorld Macau saw its net revenues rise 146% for the quarter, and Broadway Macau stayed stable.

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