During the COVID-19 crisis, Galaxy Entertainment Group has again applauded the Macau government for “their decisive and proactive leadership,” as the financial performance of the group continues to take major hits.
The casino resort operator also reaffirms its dedication to obtaining an integrated resort licence in Japan by continuing its commitment to ongoing development projects that have previously been recorded in detail.
The group emphasises that it sees the nation as a “great long-term growth opportunity” that will complement its current operations in Macau and other efforts to expand internationally.
Lui Che Woo, Galaxy Entertainment Group chairman, commented: “We remain engaged in our international expansion plans particularly in Japan. We understand that COVID-19 has impacted Japan’s timelines and understand that their schedule for accepting applications from local government and consortium parties has been extended to April 2022.”
Putting faith in Macau’s medium and long-term future, the group recognises that more difficulties could be faced in the shorter term while navigating through COVID-19, saying that “the market will take some time to recover.”
In the sense of these remarks, GEG saw sales decrease by 88 percent year-on-year in the third quarter, but increased by 34 percent quarter-on – quarter to hit HK$1.6 billion ( US$ 206.3 million). Group adjusted EBITDA came in at a loss of HK$943 million ( US$ 121.6 million), as compared to HK$4.11 billion ( US$ 530 million) in 2019 and HK$1.37 billion ( US$ 176.6 million) in the second quarter.
“I wish to take this opportunity to update you on the status of Macau and the performance of GEG during Q3 2020. COVID-19 has continued to impact the community and businesses globally including Macau and GEG,” added Lui Che Woo.
“In Q3 2020, Mainland China, Hong Kong and Macau continued to experience proactive travel restrictions and social distancing measures as they all continued to effectively contain the pandemic. We are pleased that this contributed to the progressive reinstatement of the Individual Visitor Scheme in Q3.
“However, the majority of Mainland cities only resumed IVS applications in late September, therefore visitation was not materially impacted in Q3 which will hopefully continue to ramp up in Q4.
“Given the subdued revenue and ongoing staff costs, the group’s adjusted EBITDA was negative $943m for the third quarter. This represents a 31 per cent improvement compared to the EBITDA loss reported in Q2, which was largely driven by greater emphasis on cost control.”