Galaxy’s Q3 EBITDA loss of US$74 million up 51.3% from previous quarter of this year Link copied
GEG Chairman Lui Che Woo says company has healthy balance sheet with cash and liquid investments of US$2.9 billion and net cash of US$2.5 billion as of 30 September.
Galaxy Entertainment Group (GEG) recorded an Adjusted EBITDA loss of US$74 million in the third quarter of this year, up 51.3 per cent from the previous quarter’s figure of negative US$48.9 million.
The group saw an EBITDA gain of US$65 million in last year’s third quarter.
In the last 12 months, GEG’s Adjusted EBITDA ended with US$83.2 million, down 81 per cent year-on-year.
The company’s group net revenue in this year’s third quarter was US$254.8 million, down 52 per cent year-on-year and 16 per cent quarter-to-quarter.
In this year’s third quarter, the group’s Galaxy Macau property recorded a net revenue of US$140.1 million, a decrease of 62 per cent year-on-year while StarWorld Macau’s net revenue in this year’s third quarter was US$20.1 million, down 76 per cent year-on-year.
Broadway Macau recorded a net revenue of US$1.27 million in the third quarter of this year, down 28.5 per cent year-on-year, while its third-quarter EBITDA loss this year, US$2 million, improved from the previous quarter as well as the same quarter in 2021, both recorded a loss of US$2.4 million.
Despite the losses, GEG Chairman Lui Che Woo said the group has maintained a healthy and liquid balance sheet with cash and liquid investments of US$2.9 billion and net cash of US$2.5 billion, as of 30 September.
He acknowledged Covid-19 travel restrictions imposed in the second quarter of this year “flowed into the third quarter and even resulted in the closure of casinos for 12 days [in July] during the quarter. This impacted visitation, revenue and profitability”.
He also said further potential Covid-19 outbreaks in the city may impact on the company’s future performance.
Nevertheless, Lui added that his company was “encouraged” with Macao reopening its borders to visitors from 41 foreign countries starting 1 September, a hotel quarantine period cut to seven days from 6 August, and the resumption of electronic visas for mainland Chinese visitors on 1 November. Combined with the package tours to Macao that are expected to resume soon, the group believes those changes will “drive an increase in visitation and revenue for the market”.