Galaxy Entertainment: 2nd Quarter 2022 and Interim Financial Data Presentation


Letter from the GEG Chair

I appreciate the opportunity to update you on GEG’s most recent business and financial results for the second quarter and first half of 2022. We continue to support the Macau government by providing hotels for quarantine and medical personnel. We would also like to recognize and thank our staff for their participation in our various volunteer community programs.

We are pleased to announce that we have successfully applied for and been granted an extension of our Macau gaming concession, which has been extended until the end of December 2022. The government then announced the bidding process on July 29, 2022 with submissions due by September 14, 2022. We are well positioned to compete for one of Macau’s gaming concessions given our track record of introducing innovative non-gaming elements into our complexity, our strong operating history, our significant investments in Macau’s economy and our substantial CSR efforts, including support for SMEs. We look forward to completing the bidding process for the concession by the end of the year.

A number of cities across China experienced travel restrictions for much of the first half of 2022. These restrictions on inter-provincial travel impacted visits to Macau and, in turn, impacted negative on revenues and profitability. In addition, Macau has experienced an outbreak of COVID-19 and the Macau government has requested the suspension of all business activities from July 11 to 22, 2022, which further impacted visitation, revenue and profitability. In the second quarter of 2022, the group’s net revenue was $2.4 billion, down 56% year-on-year and 41% quarter-on-quarter. Group Adjusted EBITDA was $(0.4) billion, compared to $1.1 billion in Q2 2021 and $0.6 billion in Q1 2022.

Our balance sheet remains liquid and healthy. As of June 30, 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion. Core debt remains relatively unchanged at $0.3 billion. This gives us valuable flexibility in managing operations and supporting our development initiatives. Given the continued impact of COVID-19, the Board of Directors decided today not to declare a dividend. We paid the previously announced special dividend of $0.30 per share on April 29, 2022.

During the quarter, we optimized our City Club operations and ceased operations at Rio Casino and President Casino. All game-related staff have been reassigned to our other properties.

Moving on to our development update, we continue to make incremental improvements to our resorts to ensure they remain competitive and attractive to our guests. We also continue to invest in Macau with our Cotai Phase 3 effectively completed and continue to move forward with Phase 4, our next-generation integrated resort, which will complement our ecosystem in Cotai. As you can see, we remain confident in Macau’s future where Cotai Phases 3 and 4 will support Macau’s vision of becoming a global center for tourism and leisure.

In the medium and long term, we remain confident in Macau’s future. However, we recognize that other potential outbreaks of COVID-19 could impact our future financial performance. Finally, I would again like to thank the Macau government and the health and emergency personnel who have worked so hard to keep Macau safe. I would also like to thank our staff, our management team and our Board of Directors who voluntarily contributed to the various cost savings programs and for supporting our business so well throughout the pandemic. Thanks.

Dr Lui Che Woo




August 2022


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