GGRAsia – Galaxy Ent posts US$111mln 1Q EBITDA, on flat revenue

Galaxy Ent posts US$111mln 1Q EBITDA, on flat revenue

May 13, 2021 Newsdesk Latest News, Macau, Top of the deck

Macau casino operator Galaxy Entertainment Group Ltd reported on Thursday first-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD859 million (US$110.6 million), up 203.5 percent from the prior-year period. The figure was down 15 percent sequentially.

Revenue for the period was HKD5.07 billion, up 0.5 percent from a year earlier, but flat from the fourth quarter of 2020. Net gaming revenue decreased 4.7 percent year-on-year, to nearly HKD3.86 billion. The figure was up 5.6 percent sequentially.

The numbers were given in a summary filed with the Hong Kong Stock Exchange.

Galaxy Entertainment runs its flagship casino resort Galaxy Macau (pictured) on Cotai; the StarWorld Hotel, the group’s main venue on Macau peninsula; and Broadway Macau, the mass-market focused property next door to Galaxy Macau.

Lui Che Woo, chairman and founder of Galaxy Entertainment, said in prepared remarks that the group was “pleased” with the EBITDA outcome in the first three months of 2021.

“Even though adjusted EBITDA in first-quarter 2021 was less than adjusted EBITDA in fourth-quarter 2020, we are pleased with the outcome given that fourth-quarter 2020 included a one-off HKD100 million Covid-19 insurance claim,” said Mr Lui.

He added: “From the later part of 2020 and continuing into 2021, we started to see some easing of restrictions relating to Covid-19. As a result, Macau has experienced a gradual increase in visitor arrivals which has translated into increased revenue.”

Galaxy Entertainment said in its latest filing that the group’s debt stood at HKD8.8 billion as of March 31. Cash and liquid investments amounted to HKD42.4 billion, with net cash of HKD33.6 billion.

Gaming performance

Galaxy Entertainment said on Thursday that VIP rolling chip turnover fell 30.7 percent year-on-year in the three months to March 31. Such turnover group-wide was just above HKD47.24 billion, compared to nearly HKD68.17 billion in first-quarter 2020. The figure was up 7.6 percent from the final quarter of 2020.

The casino group’s first-quarter 2021 mass table “drop” – the amount of cash wagered at mass tables and cash chips purchased at the casino cage for such games – rose by 3.5 percent year-on-year, to HKD11.59 billion. It was down 3.8 percent sequentially.

First-quarter electronic gaming volume stood at nearly HKD7.12 billion, down 41.1 percent from a year earlier, and 2.9 percent from the preceding quarter.

The Galaxy Macau property is the primary contributor to the group’s revenue and earnings.

The Cotai venue’s first-quarter net revenue was HKD3.42 billion, down 3.0 percent from a year ago, but up 3.0 percent quarter-on-quarter. The property’s adjusted EBITDA was HKD764 million, up 132.2 percent year-on-year and 3.8 percent sequentially.

Galaxy Entertainment said in its commentary on the quarterly numbers that it continued with development work for Phases 3 and 4 of Galaxy Macau, but that schedules for completion could be affected.

In March, the company said it had signed an agreement with Hospitality group Accor SA to open an all-suite Raffles-branded hotel at Galaxy Macau.

At the time, Galaxy Entertainment said the 450-suite hotel was scheduled to open in the second half of 2021. In Thursday’s announcement, the casino firm said it was targeting to open the Raffles at Galaxy Macau “in the later part of 2021 or early 2022.”

Phases 3 and 4 of the Galaxy Macau resort combined will have approximately 3,000 rooms, some casino space, a large-scale arena with 16,000 seats, and 400,000 square feet (37,161 sq metres) of MICE space.