Galaxy CEO: Q3 was a success despite typhoon
Last week, Lui Che Woo, chairman of Galaxy Entertainment Group, lauded the fact that the Macau-based gaming company delivered “solid results” despite the impact from super typhoon Mangkhut, which blew through the region last month. He has a point: Galaxy managed to deliver its eleventh consecutive quarter of year-on-year earnings growth, despite not only the catastrophic weather event, but also the World Cup, which competes with casinos for gaming revenue.
Market uncertainty continued to impact the gaming sector last week
Source: Yahoo Finance
Woo said: “On 16 September 2018 Macau experienced super typhoon Mangkhut, which was reportedly as strong as Hato in August last year. Macau saw significantly less damages and injuries during this No. 10 Typhoon Mangkhut, thanks to the precautionary measures taken by the Macau SAR government and the community, including team members of GEG. I am very proud of our team members, and I would like to take this opportunity to express my sincere gratitude to our executive team and all team members for their commitment and efforts in delivering these results, especially during Typhoon Mangkhut.”
In the three months to September 30, Galaxy managed to deliver a 10% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) to HK$3.9 billion. It also saw an uptick in net revenue, which rose by 6%, year on year, to HK$13 billion.
Woo added: “Despite increased competition, with new property openings both in Macau and regionally, GEG delivered solid results with Q3 adjusted EBITDA growing 10% year-on-year to HK$3.9bn. It should be noted that during the quarter gaming operations played unlucky which reduced EBITDA by approximately $0.3 billion. Additionally, Macau experienced adverse impacts from both the World Cup in July and Typhoon Mangkhut in September. We continue to drive every segment of our business with a particular focus on yielding our resorts. GEG’s renowned ‘World Class, Asian Heart’ service combined with our differentiated resorts offerings have resulted in our portfolio of hotels reporting virtually full occupancy.”
Dominion holds Galaxy Entertainment Group in its Global Trends Luxury Fund.
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