Revenue for the quarter slipped 29% to HK$12.3 billion, due to a sharp decline in gaming revenue. Revenue increased 5% on a quarterly basis.
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The casino operator said “bad luck in gaming operations” reduced its third quarter adjusted EBITDA by approximately HKD131 million.
The May opening of Phase 2 of GEG’s flagship property Galaxy Macau helped push non-gaming revenue up 92% year-on-year to HKD 742m, with hotel occupancy at 99%. During the third quarter of the year, the operator opened the remaining Phase 2 facilities. But the property’s overall revenue of HKD8.7b mirrored the larger numbers, rising 9% sequentially, falling 22% year-on-year.
Wynn Resorts (WYNN – Get Report) stock is increasing by 1.35% to $72.16 in early afternoon trading on Tuesday, as many stocks within the casino sector gain after Macau reported higher than expected gaming revenue.
Reflecting the Macau market’s overall trends, Galaxy Macau’s VIP revenue was down 38% year-on-year and down 4% from Q2.
The Galaxy Macau casino’s adjusted EBITDA was down 30 percent year on year and rose 19 percent from the second quarter.
Broadway Macau, which includes the first hawker-style street market in the Chinese administrative region, posted revenue of HK$189 million for the first full quarter of its operation.
City Clubs, a chain of gaming facilities spread across Macau, reported quarterly EBITDA of HK$26 million.
The company said it continued to ramp up Phase 2 of its Cotai property Galaxy Macau and of Broadway Macau.
Premium mass is the industry term for high-stakes bettors who play with cash, while high rollers brought in by the so- called junket operators bet with credit provided by the middlemen.
“The new premium mass area at Galaxy Macau has been performing well”, Credit Suisse analysts led by Kenneth Fong wrote in note.
“Spending behavior in Macau remains cautious, but we are very confident in the longer-term outlook and prospects for Macau and for [the group]”, Chairman Lui Che-woo said in a press release.
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“Given the encouraging results during Golden Week in early October and the positive supportive comments made by the government, we are cautiously optimistic that we are starting to see the market stabilise”, he added.
