Hotel and casino operator Galaxy Entertainment Group has praised the Macau Government’s “excellent job” in minimising the COVID-19 impacts on the region during a “very difficult period” for global economies.
Asserting that the Macau headquartered organisation is “well capitalised to weather the storm,” GEG saw revenue during 2020’s first quarter drop 61 per cent year-on-year to HK$5.1bn (US$658m) with adjusted EBITDA falling 93 per cent HK$283m (US$36.5m)
Lui Che Woo, chairman of Galaxy Entertainment Group, explained: “Q1 2020 has been a very difficult period for the community and businesses globally due to the COVID-19 pandemic. I would like to express my heartfelt thanks to everyone globally for their efforts and restraints during this period of time. In particular, I would like to acknowledge and thank all of the medical and emergency personnel for their efforts and sacrifice.
“The introduction of immigration and quarantine restrictions has adversely affected visitations to Macau and impacted virtually all businesses in Macau. However, I am pleased to say that the Macau Government has been doing an excellent job to implement a wide range of health and safety and financial measures, to minimise the impact of the pandemic and to unite society. Also, all the concessionaires are working closely with the Macau Government and the relevant departments to contain the spread of the virus.”
Adding: “At this point in time it is difficult to quantify the full year financial impact of the virus, but it will have a material impact on our financial results and we cannot determine the duration of the pandemic.”
GEG’s flagship Galaxy Macau continues to take the lion’s share for the firm, albeit with 62 per cent and 89 per cent yoy revenue and adjusted EBITDA drops to HK$3.5bn (US$451.57m) and HK$329m (US$42.44m).
StarWorld Macau saw first quarter revenue decline 66 per cent from a year earlier to HK$1bn (US$129m) with adjusted EBITDA finishing at HK$104 (US$13.41m). Broadway Macau’s revenue decreased 65 per cent $53m with adjusted EBITDA of -$45m from a profit of $15m a year earlier.
Updating on its current expansion plans, Galaxy asserts that its Japan-based team continues with developmental efforts across the country, with the region viewed as “a great long term growth opportunity that will complement our Macau operations and our other international expansion ambitions”.
The company also updates that it has almost completed its HK$1.5bn property enhancement program at the Galaxy Macau and StarWorld Macau properties, with progress continuing to develop a Hengqin based lifestyle resort to complement Macau’s “high-energy entertainment resorts.”
“During this challenging period of time, we need to stay focused on the battle against the pandemic and I would like to thank all of the medical and emergency personnel for their efforts and sacrifice,” Che Woo added.
“I would also like to thank our loyal staff for maintaining the highest level of cleanliness and hygiene within our resorts. I would like to acknowledge the outstanding efforts of the Central and the Macau SAR Governments and thank them for their leadership during this period.
“I am confident in the longer term that we will recover from this challenge and we are committed to supporting the Macau Government in their vision to develop Macau into a World Centre of Tourism and Leisure.”