Asian casino operator Galaxy Entertainment Group Limited has reportedly released its second-quarter financial results showing that it experienced a loss of approximately $176.77 million as its overall net revenues crashed by 91% year-on-year to hit just over $148.38 million.
According to reports from Inside Asian Gaming and GGRAsia, the Hong Kong-listed firm used an official Thursday filing to detail that its gross gaming revenues for the three-month period had declined by 97% year-on-year to hit roughly $62.57 million, which also represented a 77% decrease on the almost $110.75 million it recorded for the first quarter of 2020.
The firm behind the impressive Galaxy Macau, StarWorld Macau and Broadway Macau venues moreover explained that its second-quarter revenues from mass-market table games had plummeted by 98% year-on-year to slightly beyond $17.79 million while business from its VIP counterparts experienced a 96% diminution to finish at around $40.64 million. This source stated that the Macau casino giant additionally chalked up a 95% drop in takings from its electronic gaming machines for the three-month period to circa $4.18 million as its rolling chip volume fell by 96% to just beyond $864.45 million.
Lui Che Woo, Chairman for Galaxy Entertainment Group Limited, reportedly blamed this poor performance on the range of social distancing and travel restrictions Macau brought in to help stop the spread of the coronavirus pandemic. The executive purportedly declared that these constraints had ‘resulted in a significant reduction in visitor arrivals and a subsequent decline in revenues’ to take his firm’s overall loss for the six months since the start of the year to approximately $361.62 million.
Reportedly read a statement from Lui…
“Coronavirus had an adverse impact on our second-quarter and first-half financial results as mainland China, Hong Kong and Macau faced travel restrictions and social distancing.”
For its part and GGRAsia reported that Lui expressed optimism about the future prospects of his company after local officials decided to begin reissuing travel visas but conversely pronounced that the operator would not be declaring a dividend owing to ‘the ongoing impact of coronavirus’.
Lui reportedly proclaimed…
“We are pleased that Macau and Guangdong Province have taken the critical step of creating a travel bubble followed most notably by the reinstatement of the Individual Visit Scheme and group travel. Despite these important positive early steps, it is premature to comment on how quickly the market may recover. Going forward we expect to experience further head winds from the pandemic, which will have an adverse impact on our financial performance. However, in the medium to longer term, we continue to remain optimistic regarding the outlook for Macau in general and Galaxy Entertainment Group Limited specifically.”