Macau’s Galaxy Entertainment Group saw its gross gaming revenue plummet by 75% year-on-year and 34% quarter-on-quarter to HK$918 million (US$117 million) in 3Q22, impacted by the COVID-19 pandemic and China’s junket crackdown.
The Q3 result was almost entirely via mass gaming tables, which contributed GGR of HK$798 million (US$102 million), with the VIP rolling chip segment providing just HK$56 million (US$7 million) and electronic gaming HK$64 million (US$8 million).
Group-wide net revenues, which included HK$438 million (US$56 million) from non-gaming and HK$775 million (US$98 million) from construction materials, was HK$2.03 billion (US$259 million) – down 52% year-on-year and 16% sequentially.
Adjusted EBITDA loss of HK$581 million (US$74 million) was wider than the HK$384 million (US$49 million) loss reported in Q2 and reversed the HK$503 million (US$64 million) gain recorded in 3Q21.
By property, Galaxy Macau contributed the majority of GGR with HK$749 million (US$95 million) – including the entity of GEG’s VIP win – but fell to an EBITDA loss of HK$299 million (US$38 million).
StarWorld reported GGR of HK$150 million (US$19 million) and an EBITDA loss of HK$169 million (US$22 million) while Broadway Macau recorded an EBITDA loss of HK$16 million (US$2 million) on net revenues of HK$10 million (US$1.3 million).
Nevertheless, GEG’s balance sheet remains strong with cash and liquid investments of HK$22.5 billion (US$2.87 billion) and net cash of HK$19.3 billion (US$2.46 billion) as of 30 September 2022.
“We are encouraged by Macau reopening its borders to 41 foreign countries on 1 September 2022 where visitors are required to undergo seven days of hotel quarantine upon entry,” said GEG Chairman, Dr Lui Che Woo.
“Furthermore, the resumption of eVisas was effective on 1 November 2022, and package tours to Macau are expected to resume shortly. It is anticipated that this will drive an increase in visitation and revenue for the market.
“Going forward in the medium to longer term, we remain confident in the future of Macau. However, we do acknowledge that further potential outbreaks of COVID-19 may impact our future financial performance.”
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