Travel curbs hit casino operator's earnings

Casino operator Galaxy Entertainment Group (0027) recorded adjusted earnings before interest, taxes, depreciation, and amortization of HK$503 million in the third quarter, compared to a HK$943 million loss a year ago.

But the figure was a 54 percent drop from the HK$1.13 billion recorded in the second quarter as a result of travel restrictions to contain periodic outbreaks of Covid.

Net revenue in the third quarter surged 1.76 times over last year to HK$4.28 billion but dropped 23 percent from the second quarter.

The group's total gross gaming revenue on a management basis was HK$3.7 billion, up 325 percent year-on-year but down 26 percent quarter-on-quarter.

Mass GGR rocketed more than five times year-on-year to HK$2.3 billion, but it was still 25 percent lower from last quarter.

Its VIP GGR plunged 27 percent quarter-on-quarter to HK$1.2 billion, and Electronic GGR also tumbled 26 percent to HK$150 million.

The gaming giant said it held HK$38.4 billion cash and liquid investments as of September 30, of which, HK$27.8 billion was net cash while the total debt was just HK$10.6 billion. It added that 92 percent of its staff were vaccinated and it is working hard to achieve 95 percent in the near future. Its shares closed 1.14 percent higher at HK$44.4 yesterday.