Galaxy Entertainment Group’s third-quarter results beat analyst estimates, with adjusted EBITDA of $4.1 billion, up 6 percent year-on-year.
In a Q3 earnings release, Galaxy reported solid mass performance with mass GGR up 11 percent to $7.3 billion. Electronic GGR was up 3 percent to $641 million.
VIP, however, remained challenging, with VIP GGR down 26 percent year-on-year to $6.4 billion.
Analysts from Bernstein said the VIP downturn was likely due to the renovation of two VIP rooms which was completed and reopened towards the end of Q3.
This ultimately led to a year-on-year fall in group net revenue, down 2 percent to $12.7 billion.
“Macau has faced numerous headwinds in 2019, these include ongoing trade tensions, a slowing global economy, regional competition, currency fluctuation, disruptions in Hong Kong among others. These events have been impacting consumer sentiment and subsequent spending habits,” said GEG chairman Dr. Lui Che Woo.
“Given the overall market conditions and weaker global consumer sentiment we believe the Group has delivered solid financial results,” he said.
Turning to future development, GEG said it continues to progress with its previously announced $1.5 billion renovation enhancement program in both Galaxy Macau and StarWorld Macau Cotai Phases 3 & 4.
In August 2019, the company introduced Galaxy International Convention Center (GICC) and Galaxy Arena and the company recently welcomed Hyatt Hotel’s first Andaz Hotel to Macau and the Galaxy Resorts Precinct, to open in the first half of 2021.
The company also noted it is continuously exploring opportunities in overseas markets, including Japan.