Galaxy Entertainment experiences a significant 90% decrease in EBITDA during Q2
Galaxy Entertainment Group Releases Q2 and H1 Financial Analysis
Galaxy Entertainment Group, a leading name in Macau's gambling industry, has published its financial analysis for the second quarter and first half of the year. The report reveals a mixed bag of results, with some areas showing resilience and others experiencing significant challenges.
The company reported a healthy reserve balance, with cash and cash equivalents totaling 29 billion HK dollars as of the 30th of June. This figure represents a substantial cushion, providing a strong foundation for the company's future operations.
However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the first half of the year saw a 90% decrease compared to the same period last year. The second quarter EBITDA was a negative 408 million HK dollars, marking a significant decline.
In contrast, the company's Macau gambling allowance has been extended, making it valid for the rest of the year. This extension offers a positive outlook for the company's operations in the region.
The second quarter net revenue decreased by 56% year-on-year and 41% compared to the last quarter. However, the Broadway resort of Galaxy Entertainment Group saw an increase in net revenue of approximately one million HK dollars in the second quarter, offering a glimmer of hope.
The StarWorld hotel experienced the biggest second quarter loss at 76%. Despite this, the company remains optimistic about the future post-pandemic and plans to continue investing in the region.
In a move to support Macau's government, Galaxy Entertainment Group is currently using its casinos and hotels for Covid-19 quarantining and treatment. The company did not hand out dividends this quarter, choosing instead to focus on strengthening its operations and guest attraction.
The group's debt is currently at a low 300 million HK dollars, indicating a prudent financial approach. The company reported healthy reserve balances, which should help manage this debt effectively.
The last time Galaxy Entertainment Group paid a dividend was on the 29th of April. The company aims to make cumulative improvements to strengthen the guest attraction and competitiveness of their venues, with a focus on long-term growth rather than short-term gains.
In conclusion, while Galaxy Entertainment Group has faced challenges in the first half of the year, the company remains optimistic about the future. With a strong reserve balance, a focus on improving guest attraction, and a commitment to investing in Macau, Galaxy Entertainment Group is well-positioned to navigate the post-pandemic landscape.
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