Galaxy Entertainment Group has seen 56% and 90% decreases in its revenue and EBITDA respectively in the second quarter of the year.
The gambling and hospitality corporation Galaxy Entertainment Group has recently published its financial analysis detailing the second quarter of the year and the first half of the year. The headline figure is a pretty substantial 56% drop in revenue in the second quarter.
Examining the document published by the Hong Kong based company, let’s take a look at the key statistics first. Apart from a year-on-year decline of 56%, the second quarter’s revenue was also down 41% compared to the last quarter at 2.4 billion HK dollars. The first half’s net revenue was recorded at 6.5 billion HK dollars, down by 39% compared to the same period the year prior.
The group’s EBITDA for the second quarter of the year was in the negatives to the tune of 408 million, compared to last year’s earnings of 1.1 billion HK dollars. Furthermore, the EBITDA figure for the first half of the year also experienced a significant plunge, as it plummeted 90%, down to under 200 million HK dollars.
Continuing with the paper, the business broke down the earnings and losses for three of its Macau establishments. The biggest second quarter loss was experienced by the StarWorld hotel at 76%, meanwhile the Broadway resort’s net revenue went up by approximately one million HK dollars.
Unfortunately GEG keeps getting significantly impacted by the Covid-19 pandemic, as it’s utilizing its casinos and hotels for Covid quarantining and treatment, aiding Macau’s government in fighting against the disease. Conversely, the firm did experience some positive events as well, such as the extension of their Macau gambling allowance, which will now be valid for the next few months up to the end of the year.
Moreover, the corporation is optimistic that the future after the pandemic will be positive, as it persists in investing in the region. They mentioned their desire to continue performing cumulative improvements to strengthen the guest attraction and competitiveness of their venues.
Lastly, the company reported healthy reserve balances. As of the 30th of June, their cash and cash equivalents amounted to a total of 29 billion HK dollars, with net cash comprising over two thirds of that number at over 20 billion. The group’s debt was sitting at a pretty low 300 million HK dollars.
Despite that, however, the negative effects were big enough that the business decided against handing out dividends this quarter. Last time they had paid a dividend of 30 cents per share on the 29th of April.
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