Galaxy Entertainment Group (GEG) has reported further disappointing results in this year’s second quarter, with the group’s Adjusted EBITDA recorded at negative HK$384 million down from HK$1.13 billion profit in Q2 2021.
Last quarter’s Adjusted EBITDA was HK$575 million, which was down 33 per cent year-on-year.
Galaxy’s net revenue in the second quarter of this year was recorded at HK$2.4 billion, down 56 per cent year-on-year and down 41 per cent quarter-on-quarter.
As in the previous quarter, GEG Chairman Lui Che Woo has again said the Covid-19 pandemic was the reason behind the group’s disappointing results in this year’s first six months ended 30 June.
Travel restrictions enforced across some cities in mainland China for a “significant part” of the first half of this year have impacted visitation to Macao and “adversely impacted both revenue and profitability”, Lui said.
He added that the recent Covid-19 outbreak that began on 18 June and led to the closure of all Macao’s casinos – among other local businesses – for nearly two weeks has further impacted visitation, revenue and profitability.
However, Lui stressed Galaxy’s balance sheet remains “liquid and healthy” with net cash of HK$20.3 billion and the group remains confident in the gaming industry in Macao, despite acknowledging that the group’s future financial performance may continue to be impacted if there are further outbreaks.