Galaxy hit by bad luck as 15H1 revenue falls 34 percent

Tuesday 18th of August 2015

Galaxy Entertainment Group reported half year revenue of $25.4 billion, down 34 percent year-on-year, on the back of “bad luck.”

The company’s adjusted EBITDA for the period was $4.2 billion, down 43 percent year-on-year.

Half year net profit attributable to shareholders was $2.0 billion, down 66 percent year-on- year including $1.0 billion of non-recurring charges.

Galaxy Macau’s revenue was $17.2 billion, down 31 percent year-on-year while adjusted EBITDA came to $3.2 billion, down 41 percent year-on-year, due to opening costs and bad luck.

“During the second quarter of 2015, GEG experienced bad luck in gaming operations which reduced Adjusted EBITDA by approximately $335 million, where the majority occurred at Galaxy Macau,” the company said.

The company’s chairman said the company’s results were “credible” despite being hit by lower revenues and opening costs from its expanded Galaxy Macau property.

“As anticipated, customers’ spending behavior across the market remains cautious, resulting in lower year-on-year revenues for the Group. As a result, earnings at GEG in the second quarter were partially impacted by lower revenues and the opening preparation costs of Galaxy Macau Phase 2 and Broadway Macau, including the additional staff costs in the lead up to the grand opening.”

“The expansion was only operational for 35 days within the reporting period and we continue to ramp up the performance and open additional facilities to further boost the appeal to the mass market.”

The company added that it welcomed the government’s relaxed tone on retaining smoking lounges, saying that “allowing smoking lounges would be viewed as a positive for the market.”