On August 18, Galaxy Entertainment Group (GEG) posted results for the quarter and half-year that ended June 30. Though the company continues to feel the effects of Covid-19 shutdowns and travel restrictions—reporting a 39 percent year-over-year decline in net revenues for the first six months, and a 56 percent decline in second-quarter net revenues—Chairman Lui Che Woo expressed confidence in the future and in GEG’s bid for a second gaming concession.
“We are well-positioned to compete for one of the Macau’s gaming concessions, given our track record of introducing innovative non-gaming elements into our resorts, our strong operational history, significant investment into Macau’s economy and our substantial CSR efforts including supporting SMEs,” he wrote. “We look forward for the completion of the concession bidding process by year end.”
Despite the declines, he added, “Our balance sheet remains liquid and healthy. As of 30 June 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 provides us with valuable flexibility in managing operations and supporting our development initiatives. Given the ongoing impact of Covid-19, today the board of directors has decided not to declare a dividend.”
However, according to Inside Asian Gaming, Phase 3 of Galaxy Macau, though largely complete, remains unfinished given the lack of demand caused by the Covid-19 pandemic. Phase 3 includes an all-suite 450-room hotel called Galaxy Raffles; the Galaxy International Convention Center; and Andaz Macau, described by GEG as a “vibrant lifestyle hotel rooted in local art and culture.”
Phase 4 is also underway. When both phases are complete, they add a combined 3,000 high-end rooms and villas, 400,000 square feet of meeting and convention space, a 500,000-square-foot, 16,000-seat multi-purpose arena, food and beverage outlets, retail and gaming, among other amenities.
