Revenues Fall 56% in Q2 for Galaxy Entertainment Group

Galaxy Entertainment Group (GEG) has published its revenue for the Q2 2022. The group saw an enormous 56% year-on-year decline and a 41% quarter-on-quarter decline.

Adjusted EBITDA for Q2 was minus HK$384 million. Last year it was positive HK$1.13 billion. The company also released its results for the first half of the year. The operator saw a 39% fall in revenue to HK$6.5 billion and a 90% fall in adjusted EBITDA to HK$191 million. The net loss attributable to shareholders for H1 2022 was HK$850 million compared to a profit of HK$947 million in H1 2021.

Revenue from Galaxy Macau in Q2 2022 was HK$1.4 billion, a fall of 62% from Q2 2021 and revenue from H1 fell 38% year-on-year to HK$4.5 billion. It was a similar story at StarWorld Macau in Q2 with revenue falling 76% year-on-year to HK$220 million and H1 revenue was down 67% year-on-year to HK$644 million.

However, it was not all bad news. Broadway Macau saw revenue of HK$15 million in Q2 2022 compared to HK$14 million in Q2 2021. The venue saw revenue of HK$31 million in H1, an increase of 7% from the same period in 2021.

At the end of June, GEG had cash and liquid investments of HK$29 billion with net cash of HK$20.3 billion and core debt of HK$0.3 billion.

According to GEG, the figures were largely due to the impact of travel restrictions in Macau arising from the pandemic. Furthermore, there were coronavirus outbreaks on the island in recent months that led to the closure of all gambling venues.

In Q2 2022, due to increased cases of Covid-19 and the associated travel restrictions and quarantine rules, visitor arrivals to Macau were 1.6 million, down 27% year-on-year and down 15% quarter-on-quarter. Visitor arrivals from the Mainland were 1.4 million, down 29% year-on-year and down 18% quarter-on-quarter. Overnight visitors were 0.5 million, down 49% year-on-year and down 14% quarter-on-quarter.

Galaxy Entertainment Group Statement