А few hours ago, Hong Kong-based gambling operator Galaxy Entertainment Group released information about its financial results for the first quarter of this fiscal year. The company reported a 40% drop in earnings before interest, taxes, depreciation, and amortization and a 32% one in overall gaming revenue.
EBITDA for the three-month period ended March 31 totaled HK$2.3 billion, down 40% year-on-year. The amount of HK$3.82 billion was posted for the same period in 2014. Furthermore, the company’s earnings dropped 14% quarter-on-quarter.
As mentioned above, overall gaming revenue decreased 32% year-on-year to reach HK$13.3 billion. The drop was mainly attributed to the 16% fall in mass table turnover to HK$4.3 billion and the 41% drop in VIP turnover to HK$8.7 billion.
Currently, Galaxy Entertainment manages two hotel and casino resorts on the territory of Macau – StarWorld Macau and Galaxy Macau, as well as four City Clubs casinos across the administrative region.
StarWorld Macau reported revenue of HK$4 billion during the first quarter of 2015, down 42% as compared to what was posted a year ago. Adjusted EBITDA decreased 44% year-on-year to HK$605 million.
As for Galaxy Macau, it reported revenue of HK$9.2 billion, down 28% year-on-year. Adjusted EBITDA posted a 35% drop to HK$1.8 billion.
Adjusted EBITDA for the four City Clubs amounted to HK$31 million compared to HK$48 million in the first quarter of 2014.
Experts attributed the decrease in both earnings and revenue to the anti-corruption campaign in Macau commenced by Chinese President Xi Jinping, which resulted in less VIP players from Mainland China traveling to the popular gambling hub.
Dr. Lui Che Woo, Chairman of Galaxy Entertainment, commented that his company is currently facing “the same macro challenges” as all the gambling operators that manage casino venues in Macau.
The executive also pointed out that they are now focused on the launch of Broadway at Galaxy Macau as well as Galaxy Macau Phase 2. Both openings are scheduled to take place on May 27.
Phase 2 of Galaxy Macau is expected to feature the so-called Promenade retail mall, as well as a Ritz-Carlton hotel, which will be the first all-suite one in the world, and a JW Marriott hotel with more than 1,000 rooms.
As for Broadway, known to be the former Grand Waldo complex, it will offer to visitors a 320-room luxurious hotel, a Broadway Theater with as many as 3,000 seats, and various other attractions.
