Macau casino operator Galaxy Entertainment Group Ltd reported third quarter net revenue that was up 10.5 percent year-on-year.
Such net revenue was just under HKD10.67 billion (US$1.37 billion), the group said in a Thursday statement to the Hong Kong Stock Exchange, regarding unaudited highlights of its business for the three months to September 30.
The company recorded adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) that went up 6.2 percent from the prior-year period, to HKD2.94 billion. Judged sequentially, adjusted EBITDA was down 7.4 percent.
Lui Che Woo, chairman of Galaxy Entertainment, was cited as saying in a statement attached to the update, that the group had actually “played unlucky” in the third quarter, “which decreased adjusted EBITDA by approximately HKD165 million”.
The company’s flagship resort is Galaxy Macau (pictured) in the Cotai district. The firm also runs Broadway Hotel in Cotai, as well as StarWorld Hotel, a casino hotel in the city’s downtown area, and provides the gaming licence for several small properties known as City Clubs, which are run by third parties.
The update said the group’s total gross gaming revenue (GGR) for the three months to September 30 was HKD10.15 billion, up 16.1 percent year-on-year, but down 1.8 percent quarter-on-quarter.
Mass-table GGR was HKD8.39 billion, up 12.7 percent from the prior-year period, and up 1.1 percent sequentially.
VIP GGR was HKD1.10 billion, up 35.3 percent year-on-year, but down 20.9 percent quarter-on-quarter.
Electronic-games GGR was HKD666 million, up 35.4 percent year-on-year and up 1.2 percent from the preceding three months.
Non-gaming revenue rose 9.6 percent year-on-year, to nearly HKD1.67 billion.
Mr Lui said in the update: “On the development front, we continue to move forward with the fitting out of the Capella at Galaxy Macau [hotel] and Phase 4, which has a strong focus on non-gaming, primarily targeting entertainment, family facilities,” though he reiterated that Phase 4 “includes gaming”.
The update mentioned that an “upgrade of Level 3 ” at StarWorld meant it now “hosts one of the largest-scale live [electronic] table games terminals” setups in the Macau market.
The firm said its group balance sheet remained “healthy and liquid.” As of September 30, cash and liquid investments were HKD28.6 billion and the net position was HKD27.4 billion after debt of HKD1.2 billion.
The group paid an interim dividend of HKD0.50 per share on October 25. It had flagged the move at the time of its interim results issued in August.
Mr Lui reiterated commentary from the time of the company’s interim report, issued in September, regarding its “international expansion ambitions”.
In the Thursday statement, Mr Lui was cited as saying: “Our solid balance sheet and cash flow from operations allows us to return capital to shareholders through dividends, fund our development pipeline and pursue our international expansion ambitions.”
In July the firm had told GGRAsia that it was “focused” on its development in Macau, but wanted to “keep its options open”, mentioning that Thailand – which is actively seeking to legalise casino resorts – is “one of the most popular destinations” for travellers.
