Mass gaming drives GGR increase for Galaxy Entertainment Group in 2Q21

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Galaxy Entertainment Group has reported gross gaming revenue of HK$4.96 billion (US$638 million) in the three months to 30 June 2021, a 10-fold increase over GGR of HK$485 million (US$62 million) recorded a year earlier and 3.5% higher than Q1.

The increase was led by the mass gaming segment, where mass table win increased 7.4% versus the March quarter to HK$3.06 billion (US$393 million) and EGM win by 56% to HK$203 million (US$26 million). VIP win fell 6.5% to HK$1.69 billion (US$217 million) although the decline could have been greater if not for a high win rate, with rolling chip volume actually down 22.3% sequentially to HK$36.71 billion (US$4.72 billion).

All segments were well above 2Q20 levels, when the peak of the COVID-19 pandemic crushed revenues across the board.

GEGs net revenues reached HK$5.57 billion (US$716 million) in 2Q21, with Adjusted EBITDA of HK$1.13 billion (US$145 million) representing a 31.8% improvement over the March quarter and reversing an EBITDA loss of HK$1.37 billion (US$176 million) recorded in the June quarter last year.

By property, Galaxy Macau saw its GGR rise 8.8% sequentially to HK$3.72 billion (US$478 million) with Adjusted EBITDA of HK$924 million (US$119 million).

However, StarWorld saw its GGR decline from HK$1.22 billion (US$157 million) in Q1 to HK$1.08 billion (US$139 million), with Adjusted EBITDA of HK$135 million (US$17 million).

Broadway Macau recorded just HK$1 million (US$128,500) in GGR with an EBITDA loss of HK$20 million (US$2.5 million) while City Clubs held steady versus the March quarter with GGR of HK$152 million (US$20 million) and Adjusted EBITDA of HK$20 million (US$2.5 million).

GEG Chairman Dr Lui Che Woo noted said the company was pleased with the sequential improvement in Q2 and noted the 33.3% increase in non-gaming revenue to HK$790 million (US$102 million). This he said, was due to a strong performance in retail which bodes well for the overall recovery prospects for Macau.

GEG remains the most fiscally healthy of Macaus concessionaires with cash and liquid investments of HK$43.0 billion (US$5.53 billion) and net cash of HK$31.6 billion (US$4.06 billion) as of 30 June 2021, although Lui said the company has decided not to declare a dividend for the first half of the year due to the ongoing impact of COVID-19.