Macau casino operator Galaxy Entertainment Group Limited has released its unaudited third-quarter financial results showing that it experienced an increase of 176% year-on-year in net revenues to approximately $549.5 million.
According to a report from GGRAsia, the result for the Hong Kong-listed firm nevertheless represented a sequential decrease of 23.1% when compared with the $714.1 million it had managed to chalk up for the three months to the end of June. The source detailed that this latter decline came as a direct result of Macau’s implementation of a series of strict coronavirus-related travel measures that seriously hindered visitation throughout September and October.
Rocketing receipts:
Galaxy Entertainment Group Limited is responsible for the impressive Broadway Macau, Galaxy Macau and StarWorld Macau properties and reportedly also saw its adjusted third-quarter earnings before interest, tax, depreciation and amortization rise by 153.3% year-on-year to slightly over $64.5 million. However, just like with its net revenues, this figure purportedly equated to a slump of 55.6% when compared with the $145.2 million it had managed to record for the preceding three-month period.
Pandemic problems:
Lui Che Woo serves as the Chairman for Galaxy Entertainment Group Limited and he reportedly used an official filing (pdf) to declare that his company’s performance over the course of the third quarter had been impacted by ‘highly-publicized periodic outbreaks’ of coronavirus in Macau that had led the enclave’s government to implement ‘selected travel restrictions.’ He went on to proclaim that such controls had ‘severely impacted visitation and revenues’ although the casino operator has since managed to double vaccinate 92% of its workforce while ‘working hard to achieve 95% in the near future.’
Read a statement from Lui…
“It is pleasing to note that once travel restrictions were lifted, visitor arrivals quickly rebounded. This gives us confidence that there is pent up demand for leisure, tourism and travel within mainland China.”
Bellwether boost:
Regarding specific properties and GGRAsia reported that the 3,458-room Galaxy Macau venue saw its third-quarter net revenues grow by 353% year-on-year to top $364.4 million, which unsurprisingly equated to a sequential diminution of 26%. The flagship Cotai Strip development purportedly furthermore brought in adjusted earnings before interest, tax, depreciation and amortization that that were 157.6% higher on an annual basis at slightly beyond $58.2 million as its hotel occupancy rate struggled to clear 45%.
Smaller successes:
Across town at Galaxy Entertainment Group Limited’s 500-room StarWorld Macau enterprise and net revenues for the three months to the end of September reportedly improved by 234% year-on-year to reach roughly $85.2 million although this figure again represented a sequential plunge of 28.8%. Regarding its associated earnings before interest, tax, depreciation and amortization and the finishing figure of $3.2 million purportedly equated to an annual boost of 111.2% off of a 56% hotel occupancy rate.
Finally, GGRAsia reported that the 312-room Broadway Macau property experienced an upturn of nearly 7.7% year-on-year in terms of its net third-quarter revenues to $1.8 million while its accompanying earnings before interest, tax, depreciation and amortization debt of about $2.4 million nonetheless embodied an improvement of 48.6%.