Galaxy Entertainment Group has heaped further praise on the Macau government in the group’s latest financial update, as well as stressing commitment to ongoing development projects and Japanese expansion plans.
Issuing an assurance that the Macau-based hotel and casino operator is “effectively controlling costs,” the group lauds the government’s proactive and decisive approach as well as clear focus on public health and safety as well as economic and social stability .
“Despite these important positive early steps, it is premature to comment on how quickly the market may recover,” noted Lui Che Woo, chairperson of Galaxy Entertainment Group.
“Going forward we expect to experience further head winds from the pandemic, which will have an adverse impact on our financial performance. However in the medium to longer term, we continue to remain optimistic in the outlook for Macau in general and GEG specifically.”
Again asserting that the organisation is “well capitalised to weather the storm,” GEG saw revenue during 2020’s second quarter drop 91 per cent year-on-year and 77 per cent quarter-on-quarter to HK$1.15bn (US$148.7m), with adjusted EBITDA falling to a negative HK$1.37bn (US$176.7m) from a profit of $4.33bn (US$558.9m) a year earlier.
For the first half of the year group-wide revenue dropped 76 per cent yoy to HK6.22bn (US$802.9m), with adjusted EBITDA swinging from HK$8.31bn (US$1.07bn) to a negative HK $1.08bn (-US$140.2m).
“During this period of very low revenue our focus has shifted from revenue generation to effective cost control,” Lui Che Woo stated.
“However, it is important to not cut costs excessively and therefore adversely impact our ability to deliver upon customer service standards when business returns. We remain committed to support the Macau government, local employment and SMEs.”
Updating on current expansion plans it was added: “We continue to make good progress with our development projects, including Cotai phases three and four as well as existing enhancement projects at our resorts. These projects will help support the Macau government’s vision to develop Macau into a World Center of Tourism and Leisure.
“We also continue to make progress with our international expansion plans and we do acknowledge that timelines for Japan may be impacted by the worldwide pandemic of COVID-19, however we can adjust accordingly and we remain committed to our Japan expansion plans.”
