Macau resort operator Galaxy Entertainment Group (GEG) has announced a 90 percent year-on-year decline in adjusted Ebitda in the first half of the year.
According to a statement by the Hong Kong-listed company yesterday, its adjusted Ebitda amounted to HK$191 million in the first six months of the year.
The company chaired by Hong Kong tycoon Lui Che Woo reported a net loss of HK$850 million in the first half of 2022, versus a profit of HK$947 in the same period of last year.
In the first half, net revenue decreased 39 percent year on year to HK$6.5 billion.
In the second quarter, net revenue dropped 56 percent year-on-year to HK$2.4 billion. It was down 41 percent quarter on quarter.
The statement pointed out that Macau experienced a COVID-19 outbreak in the second quarter (the outbreak's first case was detected on June 18), adding that the local government requested the suspension of most commercial activities from July 11-22 in response to the suspension. The outbreak has meanwhile subsided. Galaxy said that the suspension "further impacted visitation, revenue and profitability."
However, the statement quoted Lui as saying that "going forward in the medium to longer term, we remain confident in the future of Macau" while acknowledging "that further potential outbreaks of COVID-19 may impact our future financial performance."
Caption: Undated file photo of Galaxy Entertainment Group's (GEG) Galaxy Macau resort in Cotai - Photo courtesy of GEG
