As the operating costs continue to grow, Lui Che Woo, chairman of Galaxy Entertainment Group, spoke about opening borders between Macau and Guangdong Province to stem losses.
The company revealed it has to spend $2.8 million a day to keep operations going and surmounting losses are caused by the lack of visitors between the regions as the lockdown continues. While the group is said to have healthy liquidity, it hoped the border restrictions would have been eased on 7 June. However, there’s still no set date.
Lui stated, “It is hard to calculate our loss during the pandemic, but we must follow and respect the government policies in preventing the spread.”
MGM China, also operating in Macau, earned HKD122.5 million ($15.8 million) in April, but expenses reached HKD346.1 million, almost double the revenue, which also excludes rent, taxation, and expected capital expenditures.
In the latest filing, MGM China stated it spends approximately HKD505.7 million, including operating costs of HKD318.8 million and maintenance expensed at HKD107.2 million. The company has taken action to minimise expenses but added it has liquidity to support itself for the foreseeable future. Yet the company also said, “Given the uncertain nature of these circumstances, the ultimate impact of the Covid-19 pandemic on MGM China’s results of operations, cash flows and financial condition cannot be reasonably estimated at this time.”