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China – Hotels less than half full as Galaxy falls by 23 per cent

By - 12 November 2021

With hotel occupancy running at 45 per cent, Macau operator Galaxy Entertainment saw a dip in revenues over its third quarter by 23 per cent from the previous quarter but up 176 per cent year on year.

Group Net Revenue was $4.3bn, Vs $1.6bn in Q3 2020 and $5.6bn in Q2 2021. Group Adjusted EBITDA was $503m, Vs $(943m in Q3 2020 and $1.1bn in Q2 2021.

Chairman, Dr Lui Che Woo said: “Our performance was supported by our continued vigilant focus on our cost control measures across the Group. We also continue to improve our properties including enhancing our retail experience by adding more world class brands, among others, where retail delivered another solid performance. Our balance sheet remains liquid and healthy. As of 30 September 2021, cash and liquid investments were $38.4bn and net cash was $27.8bn. Total debt was $10.6bn at 30 September 2021, including $10.2bn associated with our treasury yield enhancement program and $0.4bn of core debt. This provides us with valuable flexibility in managing operations and supporting our ongoing development initiatives.”

Galaxy Macau is the primary contributor to the Group’s revenue and earnings. Net Revenue in
Q3 2021 was $2.8bn, up 353 per cent year-on-year and down 26 per cent quarter-on-quarter. Adjusted
EBITDA was $454m Vs $788m in Q3 2020 and $924m in Q2 2021. Retail delivered another solid performance as we continue to enhance our mall by adding more world class luxury brands.


Galaxy Macau played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately $31m in Q3 2021. Normalized Q3 2021 Adjusted EBITDA was $485m, Vs $(787)m in Q3 2020 and $838m in Q2 2021. Hotel occupancy for Q3 2021 across the five hotels was 45 per cent.

Dr Lui Che Woo added: “Moving onto our development update, we continue to invest into Cotai Phases 3 and 4, which will support the ongoing economic development and industry diversification of Macau including the MICE market, particularly following the opening of the Galaxy International Convention Center (GICC). Phase 3 includes Raffles at Galaxy Macau which features an approximate 450 all-suite tower and we wish to align the opening with prevailing market conditions in 2022. We intend to follow this with the opening of the GICC and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets. We are also continuing to proceed with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai. As you can see, we remain highly confident about the future of Macau where Cotai Phases 3 and 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure.”

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