Galaxy Entertainment Group Q1 revenue down 20% year-on-year

By Peter Lynch

Galaxy Entertainment Group (GEG) has posted revenue of HK$4.1bn (US$520m) for the first quarter of 2022, a 20% decline from the prior-year period.

The operator reported Q1 2022 adjusted EBITDA of HK$575m, down 33% from Q1 2021. GEG noted that the decline was a result of recent outbreaks of Covid-19 in greater China, which resulted in a tightening visitation policy to preserve public health and safety. And this subsequently impacted visitation to Macau, and thus GEG revenue and profitability.

Galaxy Macau was the primary contributor to Q1 2022 revenue with HK$3.1bn, down 10% year-on-year. StarWorld Macau revenue declined 58% year-on-year to HK$424m, with Broadway Macau revenue climbing 7% year-on-year to HK$16m.

“Covid-19 has continued to impact the community and businesses globally including Macau and GEG,” said Galaxy Entertainment Group Chairman Dr. Lui Che Woo.

“Whilst we experienced a modest uptick in visitation over the May Labor Holiday, we do acknowledge it still remains well below pre-pandemic levels. During the May Labor Holiday our integrated resorts were more active, including our hotels and restaurants among others. We believe that this bodes well for the future recovery of Macau as it signals pent up demand for leisure, tourism and travel.”

Woo added: “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.

“Finally, I would again like to acknowledge and thank the Government of Macau and the health and emergency personnel who have worked so hard to ensure the safety of Macau.

“I would also like to thank our staff, management team and Board of Directors who voluntarily contributed to the various cost savings programs and for being so supportive of our company throughout the pandemic.”

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