Galaxy Entertainment returns to profit in H1 as Macau restrictions ease

Net revenue for the six months to 30 June was HK$10.67bn (£988.5m/€1.16bn/US$1.37bn), up from $6.22bn in the corresponding period last year, during which Macau was hit hard by the pandemic.

The outbreak of Covid-19 led to a host of restrictions being introduced in Macau, including the temporary closure of casinos, limited capacity when venues were permitted to reopen and strict travel rules, significantly reducing tourism in the region.

However, with measures now being eased, casinos are operating again, albeit with some restrictions, while people are now being allowed to travel into Macau for tourism again.

As such, net gaming revenue jumped 81.4% to $7.84bn, while non-gaming revenue also shot up 104.6% year-on-year to $1.39bn and construction materials revenue 17.1% to $1.43bn.

Galaxy Macau remained the operator’s main source of income, with revenue at the facility increasing 89.5% to $7.23bn in H1. Revenue at the StarWorld Macau was also up 80.6% to $1.95bn, though revenue from the Broadway Macau entertainment and food resort fell 55.4% to $29.0m.

The operator did not disclose is costs and expenses for the period, but it did confirm that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached $1.99bn, compared to a loss of $1.09bn last year.

This was similar in terms of net profit, which amounted to $900.0m for the half, up from a $2.90bn loss in the first six months of 2020.

Looking at the second quarter, revenue was 382.7% higher at $5.57bn, with gaming revenue rocketing 1,343.5% to $3.98bn, non-gaming revenue rising 508.5% to $791.0m and revenue from construction materials increasing 5.8% to $790.0m.

Galaxy Macau again led the way on $3.81bn, followed by StarWorld Macau on $932.0m and Broadway Macau with $14.0m.

Adjusted EBITDA turned from a loss of $1.37bn to a positive figure of $1.13bn, but Galaxy did not publish its net profit figure for the second quarter.

“Macau continues to gradually recover and effectively navigate through the pandemic,” Galaxy chairman Lui Che Woo said. “The Macau market experienced its fourth consecutive quarter of gross gaming revenue growth despite sporadic outbreaks of Covid-19 in mainland and, most recently, in Macau. 

“I would like to acknowledge the efforts of the health and emergency personnel who have worked so hard to ensure the safety of Macau community. I would also like to thank our staff for being so supportive of our company during these challenging times. 

“Our future remains very bright.”