Galaxy Entertainment Group suffered a 32 percent year-on-year decline in revenue in the first quarter of this year, while adjusted EBITDA during this period fell 40 percent.
The company announced that its revenue fell to HK$13.7 billion, and adjusted EBITDA, to HK$2.3 billion.
The company’s Galaxy Macau and StarWorld Macau saw revenues fall to HK$9.2 billion and HK$4.0 billion, year-on-year declines of 28 percent and 42 percent, respectively.
During the first quarter, mass revenue at Galaxy Macau decreased by 14 percent year-on-year to HK$2.9 billion but grew 6 percent sequentially. VIP win of HK$5.6 billion declined by 35 percent year-on-year and 24 percent sequentially.
“We continue to experience the same macro challenges as all the concessionaires in Macau. These are the result of a combination of factors and they are impacting customer spending behavior.”
“That said, our business remains healthy and we continually review our operations to ensure that both short and longer term opportunities are maximized. The current headwinds are not a surprise to the market or to GEG.”
The company said its Galaxy Macau Phase 2 and Broadway at Galaxy Macau are on schedule and on budget to open on May 27 this year.
“Together they will take GEG’s investment in Cotai to HK$43 billion and double the existing footprint of the resort to 1.1 million square meters.”
In the latter part of 2015, the company expects to begin site investigation works for Cotai Phases 3 and 4, the plans for which are almost complete.
“Cotai Phases 3 & 4 will provide GEG with thousands of new hotel rooms and a vast array of leisure and entertainment facilities,” the company said.