Depressing first-quarter financials for Galaxy Entertainment Group Limited

Macau casino operator Galaxy Entertainment Group Limited has released its unaudited financial results for the first three months of 2022 showing that its aggregated net revenues had fallen by 20% year-on-year to about $522.32 million.

The Hong Kong-listed firm used an official filing (pdf) to detail that this figure represented a decline of some 14.5% when compared with previous quarter’s finishing tally of slightly over $611.47 million and sat a disappointing 19.6% below the $649.71 million recorded for the initial three months of 2020. The company blamed this most recent dip on consumer hesitancy following a slew of coronavirus outbreaks in mainland China alongside associated travel restrictions that have only recently begun being rolled back.

Returns reversal:

Galaxy Entertainment Group Limited is responsible for the 3,450-room Galaxy Macau property located in the enclave’s Cotai Strip neighborhood and it explained that its adjusted aggregated first-quarter earnings before interest, tax, depreciation and amortization had retreated by 33% year-on-year to $73.25 million, which was also 42.5% lower than the $127.39 million it chalked up for the final three months of 2021. However, the operator stated that this metric for the ‘latest twelve months’ stood at approximately $420.37 million to be ‘up significantly year-on-year’ despite dropping 8% sequentially.

Depressing downturn:

Moreover behind the impressive Broadway Macau and StarWorld Macau venues, Galaxy Entertainment Group Limited revealed that its combined first-quarter gross gaming revenues of some $433.13 million equated to a slump of 29% year-on-year as the Macau casino market continues to come to terms with the new post-junket reality. It furthermore noted that rolling chip receipts had decreased by 69% to a little over $72 million while mass-market gaming table volumes shrank by 7% to around $343.98 million.

Occasioned optimism:

However, the Hong Kong-headquartered operator pronounced that it is ‘well positioned to capture mass customers when the market returns’ and chalked up an increase of 25% year-on-year and 2% sequentially in first-quarter electronic gaming machine revenues to almost $20.64 million. The firm additionally disclosed that it continues to remain financially self-sufficient without the need for outside backing and currently holds cash and investments worth in the region of $968.11 million.

Read a statement from Galaxy Entertainment Group Limited…

“Following the closure of the VIP business, we have been reallocating our resources and marketing efforts to the mass-oriented tourists who appreciate our extensive array of resort offerings. Macau concessionaires continue to work with the Macao Government Tourism Office to actively promote Macau as a safe tourism destination and has hosted a series of roadshows and exhibitions in a numbers of mainland cities. We will continue to actively support this important government initiative.”