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China – Galaxy sees 5.6 per cent quarter-by-quarter increase in GGR

By - 13 May 2021

Macau casino operator Galaxy Entertainment was ‘pleased with the outcome’ of its first quarter financials, which saw quarter by quarter GGR growth of 5.6 per cent, and a plateauing of performance compared to last year.

In Q1 2021, the group posted net revenue of $5.1bn, up one per cent year-on-year and flat quarter-on-quarter. Adjusted EBITDA was $859m, up 204 per cent year-on-year and down 15 per cent quarter-on-quarter. Galaxy Macau’s Adjusted EBITDA was $764m, up 132 per cent year-on-year and up four per cent quarter-on-quarter. StarWorld Macau’s Adjusted EBITDA was $170m, up 63 per cent year-on-year and up 13 per cent quarter-on-quarter. Broadway Macau’s Adjusted EBITDA was $23m versus $45m in Q1 2020 and $(28) million in Q4 2020.

The Group’s total GGR on a management basis1 in Q1 2021 was $4.8bn, down 13 per cent year-on-year and up three per cent quarter-on-quarter. Mass GGR was $2.8bn, up one per cent year-on-year and up one per cent quarter-on-quarter. VIP GGR was $1.8bn, down 27 per cent year-on-year and up 10 per cent quarter-on-quarter. Electronic GGR was $130m, down 44 per cent year-on-year and down 27 per cent quarter-on-quarter.

Dr. Lui Che Woo, Chairman of Galaxy Entertainment, said: “We are pleased with the outcome given that 4Q20 included a one-off HK$100 million COVID-19 insurance claim. In addition, the Construction Materials Division is historically seasonal softer in the first quarter compared to the other three quarters. COVID-19 has continued to impact the community and businesses globally including Macau and GEG.

“We are encouraged by Macau’s gradual recovery and remain cautiously optimistic that business conditions will continue to improve, while, at the same time, remain hypersensitive about any future outbreaks of the pandemic. From the later part of 2020 and continuing into 2021, we started to see some easing of restrictions relating to COVID-19. As a result, Macau has experienced a gradual increase in visitor arrivals which has translated into increased revenue. We have seen signs of early recovery post the reinstatement of the Individual Visit Scheme in late September 2020 and it may take a few more quarters for business volumes to ramp up.”

The group’s Q1 Adjusted EBITDA of $859m more than tripled year-on-year and was down 15 per cent quarter-on-quarter.

On May 15 2021, Galaxy Macau will celebrate an exceptional 10-year presence in Macau.

Dr. Lui said: “Since our launch in 2011, Galaxy Macau has delivered the highest level of entertainment and leisure options and provided exceptional experiences to our guests from all over the world. We are pleased to report that we continue to make good progress with our expansion plans through our development projects including Cotai Phases 3 & 4. In addition, we continue renovate, reconfigure and introduce new products to our resorts and we remain engaged in our international expansion plans including Japan, which is also being impacted by the pandemic.

“We were pleased to announce in March 2021 the introduction of the legendary Raffles at Galaxy Macau. Raffles at Galaxy Macau will feature an approximate 450 all-suite tower and is targeted to open in the later part of 2021 or early 2022. The addition of Raffles further expands GEG’s portfolio of world-class accommodation offerings.

“Our balance sheet continues to remain healthy with $42.4bn in cash and liquid investments as at the end of Q1 and $33.6bn of net cash. Total debt was $8.8bn, including $8.3bn associated with our treasury yield enhancement program and $0.5bn of core debt. Our conservative financial management provides the Group with valuable flexibility in managing our ongoing operations and allows us to continue with our longer term development plans.”

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