Asia round-up: Galaxy, APE, Paradise Q1s; PAGCOR data & IGT expansion

By Louis Thompsett

GEG Q1 revenue down 20% year-on-year 

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 Covid-19 outbreaks in greater China, which resulted in a tightening of visitation policy to preserve public health and safety. 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. 

APE Q1 revenue down 35% 

Asia Pioneer Entertainment Holdings' (APE) Q1 report shows that group revenue totalled around HK$1.3m ($1.66m), representing an approximate decrease of 35% from the HK$2m recorded for the same period of 2021.  

The company largely considers this decrease to be the result of reduced income derived from technical sales and distribution of electronic gaming equipment; a reduction of around 72%. Moreover, this amount is offset by the increase in revenue from consulting and technical services, and repair services of 61.9% and 150.5% respectively, from the corresponding periods.  

In addition, APE recorded a total comprehensive loss of roughly HK$4.3m which again, is a decrease of 1.8% from a Q1 2021 total of HK$4.3m. 

IGT expands Asian footprint in deal with Philippine casino 

International Game Technology (IGT) will provide its Advantage casino management system (CMS) to a new casino resort in the Philippines. 

Nustar Resort and Casino in Cebu is slated to open its doors later this year, now with IGT’s CMS.

This deal also positions Nustar to offer cashless gaming via IGT’s “Resort Wallet” technology and will see the soon-to-open casino resort become the first in Asia to deploy IGT’s Peak49 cabinet. 

“As Cebu’s premier integrated resort, Nustar Resort and Casino prioritises partnerships with experienced and trusted suppliers such as IGT who can help us deliver world-class gaming entertainment and build strong guest relationships through future-forward technologies” Sabri Jaafar, Nustar Resort and Casino Vice President, EGM Operations

“As Cebu’s premier integrated resort, Nustar Resort and Casino prioritises partnerships with experienced and trusted suppliers such as IGT who can help us deliver world-class gaming entertainment and build strong guest relationships through future-forward technologies,” said Sabri Jaafar, Nustar Resort and Casino Vice President, EGM Operations. 

Paradise Co reports operating loss of KRW25.53bn

In South Korea, Paradise Co has reported an operating loss of KRW25.53bn ($19.8m) for Q1 2022, a loss widened by almost KRW5bn from the prior-year period. 

The foreigner-only casino operator generated adjusted EBITDA of negative KRW1.49bn this quarter, down from KRW2.76bn in Q1 2021. 

Casino sales for the period amounted to nearly KRW31bn, representing a quarterly decline of 37% and a year-on-year decline of 18%. 

However, the operator’s Q1 sales were up over 3% year-on-year at KRW99.73bn. 

Paradise Co has noted its intent to continue sales growth, focusing specifically on locals and ex-pats for the time being, given the current Covid-related travel restrictions and social distancing requirements that persist in the country. 

Philippines Q1 GGR up 30% year-on-year 

Elsewhere, all the Philippines’ licensed casinos generated gross gaming revenue of Php30.15bn ($577m) for Q1 2022. This was up 30% on Q1 2021 and 14% higher than the previous quarter.  

The Philippine Amusement and Gaming Corporation (PAGCOR) attributes this improved performance to the easing of most Covid restrictions across the Philippines, with the country's international borders opened in February and all lockdowns dropped in April. 

The three biggest sources of land-based revenue came from City of Dreams Manila, Okada Manila, Resorts World Manila and Solaire Resort & Casino, with a combined GGR of Php26.89bn for the first quarter of 2021.

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