Gaming revenue dropped by 31.3 percent to HK$449.9 million. Half-year adjusted EBITDA amounted to HK$4.2 billion, down 43% as compared to the same period a year ago.
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And that’s despite signs the government may relax restrictions on mainlanders transiting Macau and delay a smoking ban. This is part of the “cost control initiatives” adopted by the group to adapt to declining gaming revenues. The company pointed out that playing unlucky in its gaming operations resulted in reduced profitability by HK$335 million in the second quarter of the year and HK$265 million in its first half. In terms of the sale of construction materials, they went down to HK$0.909 from HK$1.02 billion due to the “softening of demand in the number of its major markets”, namely Hong Kong, Macau and the Mainland.
August is likely to see Macau casinos generating their second lowest month of gross gaming revenue since 2010. The firm has already implemented a “salary freeze for all senior executives”.
The statement said that the company planned to invest about HK$2.15 billion in a casino resort in the Atlantic island nation of Cape Verde.
According to recent reports, profits at Macau’s six biggest casino operators dropped by 40% in the first six months of 2015.
The unofficial industry figures used by several analysts for the first 16 days of August indicate the end of the month toal will be about $2.3 billion.
However, gaming was not the only sector of Galaxy to be affected by adverse market conditions. “But once it added up all the casinos next year, people will be more fond of going to Macau”.
Galaxy is “pleased” the Macau government has “indicated some flexibility and are open-minded to consider the retention of smoking lounges”, which would be positive for the casino industry, the company said.
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Galaxy Entertainment additionally said on Wednesday that it planned to start site investigation works for phases three and four of its Cotai landbank between late 2015 and early 2016.
