Galaxy Entertainment fails to escape Macau revenue problems

xy Entertainment Group (GEG) has reported a 29% year-on-year revenue decrease to $12.3bn for the three month period ended September 30.

Adjusted EBITDA for the operator was $2.1bn, down 36%, and GEG said this figure would have been higher by approximately $131m were it not for having “played unlucky”.

Revenue for Galaxy Macau was $8.7bn, a 22% downturn and its adjusted EBITDA descended 30% to $1.7bn.

StarWorld Macau’s revenue also dropped, with the figure of $2.9bn representing a 48% fall, while Broadway Macau posted revenue of $189m for its first full quarter in operation after opening in May.

GEG’s debt was $1.2bn as of September 30 and a dividend of $0.14 per share was announced, to be paid on or about October 30.

GEG said: “The challenging market conditions that we have experienced over the past year have continued into Q3 this year. A number of factors are weighing on sentiment and these include: the widely publicised anti-corruption program, the slowing Chinese economy, the current smoking restrictions, concerns about liquidity and the fall of the A-Shares index to name a few.”

The Macau casino market has suffered 16 consecutive months of year-on-year gross revenue decline, with September’s total of 17.13bn patacas being the lowest monthly total to have been reported since September 2010.