Hong Kong-headquartered casino operator Galaxy Entertainment Group posted its financial results for the three-month period ended September 30. Group revenue dropped 29% year-on-year and amounted to HK$12.3 billion for the reported period. Revenue increased 5% on a quarterly basis.
Adjusted EBITDA amounted to HK$2.1 billion for the third quarter of the year, down 35% year-on-year and up 13% quarter-on-quarter. The company attributed the considerable annual decrease to bad luck.
In May, Galaxy Entertainment launched Phase 2 of the Galaxy Macau integrated resort. During the third quarter of the year, the operator opened the remaining Phase 2 facilities. Revenue at the luxury property amounted to HK$8.7 billion for the reported period, down 22% year-on-year. Revenue grew 9% on a quarterly basis .
Adjusted EBITDA at the venue dropped 30% year-on-year and increased 19% quarter-on-quarter to reach HK$1.7 billion. Following the launch of Phase 2, non-gaming revenue grew 92% year-on-year and 60% quarter-on-quarter to reach HK$742 million.
StarWorld Macau reported quarterly revenue of HK$2.9 billion, down 48% as compared to what was posted for the same period a year ago. On a quarterly basis, revenue dropped 7%. Adjusted EBITDA amounted to HK$514 million, down 43% year-on-year and up 1% quarter-on-quarter. Non-gaming revenue totaled HK$60 million.
Broadway Macau, which includes the first hawker-style street market in the Chinese administrative region, posted revenue of HK$189 million for the first full quarter of its operation. During the third quarter of the year, Galaxy Entertainment continued opening facilities and ramping up the luxury property.
City Clubs, a chain of gaming facilities spread across Macau, reported quarterly EBITDA of HK$26 million. In comparison, the chain posted EBITDA of HK$25 million for the second quarter of the year and of HK$41 million for the third quarter of 2014.
Apart from its financial results, Galaxy Entertainment also posted information about its development plans. The company said that it expects development cost savings of up to HK$500 million from its Galaxy Macau Phase 2. The company also said that investigation works for Cotai Phases 3 and 4 are expected to start early next year. As for its international development plans, Galaxy Entertainment said that it would continue exploring opportunities for overseas investment.
