The board of Macau concessionaire Galaxy Entertainment said it was confident in its long-term prospects despite a 38.9% year-on-year decline in revenue.
The game’s net revenue was HK$6.52 billion (£690.5 million/€818.4 million/$831.7 million). Not only is it a sharp drop from the first half of 2021, it is also down 75.1% from the first half of 2019, the last period before the covid-19 outbreak began to affect operations.
However, despite this, and further lockdowns after the period ended, leading to the worst month for gaming revenue since Macau opened up its gaming market to multiple licensees, Galaxy’s board will likely continue to thrive in the future. I am still confident in
“Despite recent difficult experiences in Macau, we are confident in the long-term prospects of Macau in general and GEG in particular,” said the Board.
Meanwhile, Galaxy Entertainment Chairman Dr. Lui Che Woo expressed similar sentiments, but also noted that the outlook could be more challenging as the Covid-19 outbreak continues.
“In the medium to long term, we are confident in the future of Macau.
This was partly due to what Galaxy’s board described as a “healthy” balance sheet, with net cash of HK$20.3 billion at the end of the second quarter. Meanwhile, core debt reached the level of the previous year at HK$300 million.
Games contributed to net revenue of HK$4.13 billion, down 47.4%. This was due to total revenue of HK$4.77 billion, down 51.1%. A game’s net revenue is the game’s gross revenue minus commission and incentive payments.
The operator’s flagship property, Galaxy Macau, reported gross gaming revenue of HK$3.95 billion, down 44.9%.
However, StarWorld Macau was even more difficult, with GGR down 72.5% to HK$631 million. Galaxy’s City Clubs – a number of smaller gaming venues in Macau – were the most resilient venues, but revenue still fell 35.1% to HK$198 million.
Non-gaming activities at Galaxy Entertainment’s resorts contributed another HK$1.08 billion, down 23.3%.
Finally, Galaxy’s construction materials sector brought in an additional HK$1.32 billion.
The business reported profit before interest, tax, depreciation and amortization of HK$191 million, a decrease of 90.4%.
new concessions
The company announced it would bid for one of the new concessions to operate a casino in Macau after extending the original concession for six months. The new bidding process for the concession follows passage of legislation to reform Macau’s gaming sector.The consultation on the bill proposed Reduced number of operators We were allowed to do business in Macau, but chose to keep that number at 6 in the final version.
“Given our track record, we are well positioned to compete for one of Macau’s gaming concessions.
We have a proven track record of introducing innovative non-gaming elements into our resorts, a strong operational track record, significant investments in the Macau economy, and substantial CSR commitments, including supporting small and medium-sized businesses,” said Lui. “We look forward to completing the concession bidding process by the end of the year.”
