Galaxy Entertainment Group (GEG) has released its financial reports for Q3 ending on September 30. The report is quite interesting for the company as the company has recorded declined revenue but increased earnings. This reflects the trend that the company is making a good amount of profit from VIP Gambling. The report says that the Honk Kong-based group revenue fell by almost 2% year on year to HK $12.7b.The adjusted earnings, however, rose by 5.6% to HK $4.1b.
GEG is one of the last six casinos that have delivered the Q3 report. Like others, the company has a similar fate. The VIP numbers have come down and the mass numbers were up by large number. GEG has said that the bad luck of the customers has added HK $184m Q3 earnings.
The net contribution of the gaming is now was down by 4.2% to HK$10.6b. The VIP gambling took a 26% plunge to HK $6.37b. VIP turnover fell by 38% year on year. However, the win was jumped by 0.6 points by 3.9%. It is more than the expected range of 2.7-3.0%. However, the percentage was 4.1% in Q2.
The mass table of drop increased by 1.6%, the win rate rose two points. The table revenue is also up by 10.7% to HK $7.3b. The electronic gaming also increased by 6% but the net win improved by 3.2% to HK$ 641m.
Galaxy Macau bore most of the burnt due to the VIP slowdown. The total turnover fell by almost 42%, however, the win increased by 4.4%. It was the same for Q2 but it increased by 1% on year on year basis. The mass table wins increased by 15.6% to HK $5.13b. The VIP Segment was a mere $4.8b.
The five hotels of Macau boasted almost 100% occupancy in the Q3. The GEG also announced a deal with Hyatt Hotels Corp on Tuesday. As per the new deal, the GEG would add Andaz-branded hotel equipped with 700 rooms to the Phase 3 and Phase 4 of Galaxy Macau. This new hotel would be open to the public from 2021. However, the Q3 reports of 100% occupancy provide quite a clear picture of the need of the hotel.
On the other side, the Starworld Macau property of Galaxy recorded a falling revenue of 14% to HK $2.5b. The earnings were also decreased by 11% to HK $828m. The VIP turnover fell by one third in the quarter and the revenue was down by 36%. The mass table was almost unchanged reported Calvinayre. The Broadway Macau which is a VIP free property saw flat revenue of HK $141m.
Lui Che Woo, the Chairman of GEG said that the company had performed well despite the struggling Macau market. Macau has seen a huge decline due to multiple factors. The US-China trade war has its impact on the Macau revenue. On the other hand, strict rules against the gamblers in Mainland China also ensured difficult roads ahead for Macau. The Hong Kong protests added insult to the injury and since then the Macau revenue has been mixed or mostly falling.