Galaxy Entertainment posted flat adjusted EBITDA for the April-June 2019 period, as well as lower revenue, but the results nevertheless topped analysts’ forecasts, helped by higher hold.
Net revenue was down 5% year-on-year to HK$13.2 billion (about US$1.7 billion), while adjusted EBITDA was HK$4.3 billion (about US$559 million), higher than the Bloomberg consensus estimate.
Bernstein Research noted that all properties benefited from a higher hold, and adjusted for the luck factor, EBITDA would have been in line with the consensus.
In its earnings note, Galaxy said it remains confident in Macau’s long-term future due to China’s outbound tourism trends and improving infrastructure that eases access to the territory. However, shorter term it said it was seeing rising competition from casinos around Asia that are targeting Chinese consumers and said trade tensions are harming consumer sentiment.
The company had 20.6% share of the Macau market in the period, down from 23.2% in the same period last year. (AGB)