Galaxy Entertainment earnings fall 8pc

Business | Avery Chen 17 May 2019

Galaxy Entertainment (0027) yesterday reported its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 8 percent both year-on-year and quarter-on-quarter to HK$4 billion in the first three months this year.

Shares of the Macau casino operator fell 1.73 percent to HK$51.05 yesterday.

Chairman Lui Che-woo said the decline in EBITDA is not a "big warning signal". Macau had achieved massive progress in the past 10 years, exceeding gaming destination Las Vegas. "We cannot ask too much," he said.

When asked about Hong Kong's new extradition law, deputy chairman Francis Lui Yiu-tung said the new law is worth supporting.

Many chambers of commerce are worried that the new extradition law will affect the business environment, and Francis Lui said it was still necessary to wait for the final version of laws, and he is confident that the law will cover what various social groups care about.

Galaxy Entertainment's net profit also dropped 8 percent yearly and quarterly to HK$13 billion in the first quarter.

The casino operator recorded a 10 percent year-on-year decline and a 10 percent quarter-to-quarter drop in gross gaming revenue in the first quarter to HK$15.4 billion.

Total mass table gross gaming revenue was HK$7.3 billion, up 9 percent year-on-year and flat quarter-on-quarter. Total VIP gross gaming revenue slumped 25 percent yearly or fell 18 percent quarterly to HK$7.4 billion. Total electronic gross gaming revenue was HK$606 million, up 1 percent year-on-year and down 11 percent quarter-on-quarter.

Galaxy Macau's adjusted EBITDA decreased 7 percent year-on-year and 12 percent quarter-on-quarter to HK$3 billion. StarWorld Macau's adjusted EBITDA fell 5 percent yearly or rose 6 percent quarterly to HK$949 million.

Broadway Macau's Adjusted EBITDA from January to March was HK$15 million, up 15 percent year-on-year and up 88 percent quarter-on-quarter.

The company said it will continue with development works for Phases 3 and 4 projects in Cotai, and will keep working for a lifestyle resort on Hengqin, as well as explore opportunities in Japan and continue to actively build relationships with all stakeholders.

Lui Che-woo said Tokyo is an ideal place to set up a resort, but it still waits for government approval.

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