Galaxy Entertainment Group reported a dramatic fall of revenues by 66% in the first half of 2015. The Macau casino operator, which was founded by billionaire Liu Che Woo, witnessed its net profit plunge by almost two thirds to HK$2 billion ($258 million). The drop in profit is seen as a result of the HK$1 billion in non recurring charges, including $700 million in pre-opening expenses for two properties that opened in Cotai during the period.
The Group’s half year revenue was HK$25.4 billion and that is 34% lower in comparison with last year’s revenue. The press release by the company also revealed that the total gaming earnings in the first six months of the year decreased by 36% y-o-y to HK$24.5 billion. The second quarter of 2015 showed worse results compared to the second quarter of 2014. Galaxy Entertainment’s total gaming revenue fell for 38% y-o-y to HK$11.2 billion, whereas the total VIP earnings noted a fall of 47% to HK$6.9 billion.
A special dividend of HK$0.14 per share is scheduled to be paid on 30th of October, the Group announced.
Galaxy Entertainment reported adjusted EBITDA of HK$4.2 billion for the first two quarters of 2015, down by 43% compared to 2014. Adjusted EBITDA for the second quarter only noted a decrease of 46% to HK$1.9 billion.
The company’s results for the first half of the year included only 35 days of operations of the second phase of Galaxy Macau Casino and the adjacent property Broadway Casino. Both of these facilities were opened on 27th of May.