The gross gaming revenue (GGR) that Galaxy Entertainment Group (GEG) made in the three months to June 30, 2021, is $638 million. Compared to the GGR in the same period last year, it is increased ten times. Additionally, it is 3.5% higher than the GGR in Q1.
Small Declines Were Recorded in VIP Win
GEG’s mass gaming sector was one of the main factors that influenced the rise in GGR. Compared to the prior quarter GGR of $393 million, the mass table win increased by 7.4%. EGM (electronic gaming machine) win was increased by 56%, as it reached $26 million. The VIP win suffered a 6.5% decline, coming in at $217 million. The rolling chip volume was down to $7.72 million, or 22.3%.
However, compared to the 2Q20 levels, the segments were much better. In 2020, the pandemic had its peak, which is why the revenue was crushed.
With the Adjusted EBITDA, $145 million, GEG’s net revenue in 2Q21 was $716 million. Compared to the prior quarter, that is an increase of 31.8%. Moreover, the same quarter last year resulted in an EBITDA (earnings before interest, tax, depreciation and amortization) loss of $176 million.
Galaxy Macau Recorded 8.8% Rise in GGR and Other Establishment Had Losses
Galaxy Macau’s GGR rose by 8.8% by property and reached $478 million. The adjusted EBITDA was $119 million. But, that was not the case with StarWorld, as its GGR declined to $139 million, with a $17 million adjusted EBITDA. In Q1 StarWorld’s GGR was $157 million.
Broadway Macau’s GGR was $128,500 with a $2.5 million EBITDA loss. Elsewhere, City Clubs had GGR of $20 million GGR and $2.5 million in adjusted EBITDA.
The chairman of GEG, Dr. Lui Che Woo, stated that GEG is pleased with the improvement in Q2 and credited the success to retail’s massive performance, which indicates stable progress in Macau’s recovery. Additional good news coming from Macau is that the number of tourists is set to increase this year, which also bids well for the gambling industry in this region. Of course, the main reason why Macau is still struggling to get back to its normal state is because of the pandemic.
With that begin said, out of all concessionaires in Macau, GEG remains the healthiest in fiscal terms. As of June 30, its liquid and cash investments are $5.53 billion, while its net cash is $3.06 billion. But, Lui stated that, due to the impact of COVID-19, the company ruled not to declare a dividend for the first half of 2021.