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Galaxy and Melco revenue rises, SJM dips on the first quarter

Casino operator Galaxy Entertainment Group (GEG) said on Thursday that its total revenue in the first quarter rose 5 percent year on year to HK$14.1 billion.

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UPDATED: 22 Dec 2023, 5:46 am

Casino operator Galaxy Entertainment Group (GEG) said on Thursday that its total revenue in the first quarter rose 5 percent year on year to HK$14.1 billion.

Galaxy said in a statement that its earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 31 percent year on year to HK$3.2 billion.

Analyst estimates compiled by Bloomberg had forecast EBITDA to reach HK$2.99 billion.

“We remain confident in the longer-term outlook for Macau, due to the growth of the mainland middle class who has a strong desire for leisure, tourism and travel”, the company said in the statement.

Melco Resorts and Entertainment Ltd. (MLCO) on Thursday also reported first-quarter profit of $113.4 million.

On a per-share basis, the Central, Hong Kong-based company said it had profit of 23 cents. Earnings, adjusted for non-recurring costs, were 24 cents per share.

The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.

The casino company posted revenue of $1.35 billion in the period. Its adjusted revenue was $1.28 billion.

Melco shares have increased 41 percent since the beginning of the year. The stock has increased 47 percent in the last 12 months.

Meanwhile, SJM Holdings said in a statement that its total revenue fell 5.2 percent to HK$10.5 billion in the first quarter.

Adjusted EBITDA rose 0.7 percent to HK$843 million. Profit attributable to the company’s owners increased 3.3 percent to HK$580 million. The statement attributed the profit growth “mainly due to an increase in mass-market gaming revenue”.

SJM Holdings also said that its gaming revenue of HK$10.39 billion accounted for 16.9 percent of Macau’s casino gaming revenue in the first quarter, as compared with 20.2 percent a year earlier.

The statement quoted SJM Holdings CEO Ambrose So Shu Fai as saying that the “first-quarter results saw a resumption of growth in mass-market gaming revenue, quarter-to-quarter and year-on-year”.

Melco Resorts and Entertainment Ltd. (MLCO) on Thursday also reported first-quarter profit of $113.4 million.

On a per-share basis, the Central, Hong Kong-based company said it had profit of 23 cents. Earnings, adjusted for non-recurring costs, were 24 cents per share.

The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.

The casino company posted revenue of $1.35 billion in the period. Its adjusted revenue was $1.28 billion.

Melco shares have increased 41 percent since the beginning of the year. The stock has increased 47 percent in the last 12 months.

UPDATED: 22 Dec 2023, 5:46 am

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