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By Yi Wei Wong
Galaxy Entertainment Group Ltd posted a net loss in the first half of the year due to a sharp drop in revenue and profitability, worsened by the suspension of its Macau operations in July.
The casino operator reported a net loss of HK$850.5 million ($108.4 million) in the first half, compared with a net profit of HK$947.1 million a year earlier.
Revenue fell to HK$6.52 billion in the first half from HK$10.66 billion a year earlier, the company said on Thursday.
“Multiple cities in China experienced travel restrictions for most of the first half of 2022. These restrictions on inter-provincial travel impacted visits to Macau, which in turn adversely affected revenue and profitability,” said Chairman Lu Zhihe said in a statement. stock exchange release.
In particular, Macau has experienced the Covid-19 outbreak, which has led to the government’s request to suspend all commercial activities from July 11 to 22, which has further affected the profitability of casino operators, the chairman added.
Due to the ongoing impact of Covid-19, Galaxy Entertainment’s Board of Directors has decided not to declare a dividend.
The casino operator said it had extended its Macau gaming license until the end of December.
It expects to complete the bidding process for the new license by the end of this year.
Write to Yi Wei Wong yiwei.wong@wsj.com
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