Galaxy’s Q1 Better Than Expected; Solid Balance Sheet Positions It Well Amid COVID-19 Headwinds

Galaxy Entertainment continued to post better-than-expected quarterly results, with adjusted EBITDA of HKD 575 million beating Bloomberg consensus of HKD 500 million. The number represents a 33% year-over-year decline, which we think is still solid, given the COVID-19 headwinds. In comparison, most of its Macao peers were unable to return to the EBITDA breakeven point in the quarter. We believe this reflects the firm’s premium asset quality and best-in-class management, which is allowing Galaxy to attract more mass and premium mass visitors, while maintaining prudent cost management.