Galaxy Entertainment Group Q2 & Interim Results 2022

Continue Working Closely With Macau Community To Control COVID-19

Well Prepared to Submit Macau Gaming Concession Tender by 14 September

Q2 2022 Group Adjusted EBITDA of $(0.4) Billion, Versus $1.1 Billion in Q2 2021 and $0.6 Billion in Q1 2022

Continue Effectively Controlling Costs & Remains Financially Healthy

Continue Investing in Macau�s Future with Cotai Phases 3 & 4

HONG KONG–(BUSINESS WIRE)–Galaxy Entertainment Group (“GEG”, “Company” or the “Group”) (HKEx stock code: 27) today reported results for the three-month and six-month periods ended 30 June 2022. (All amounts are expressed in Hong Kong dollars unless otherwise stated)

LETTER FROM THE CHAIRMAN OF GALAXY ENTERTAINMENT GROUP

I appreciate the opportunity to update you on GEG’s most recent activities and financial results for the second quarter and first half of 2022. We continue to support the Macau Government by providing hotels for quarantine and medical personnel. We would also like to acknowledge and thank our staff for participating in our various voluntary community programs.

We are pleased to report that we successfully applied for and was granted an extension of our Macau gaming concession, which has been extended to the end of December 2022. The Government subsequently announced the tendering process on 29 July 2022 with submissions due by 14 September 2022. We are well positioned to compete for one of the Macau’s gaming concessions, given our track record of introducing innovative non-gaming elements into our resorts, our strong operational history, significant investment into Macau’s economy and our substantial CSR efforts including supporting SMEs. We look forward for the completion of the concession bidding process by year end.

A number of cities across China experienced travel restrictions for a significant part of the first half of 2022. These restrictions on inter-provincial travel impacted visitation to Macau and in turn adversely impacted both revenue and profitability. In addition, Macau experienced a COVID-19 outbreak and the Macau Government requested suspension of all commercial activities from 11 to 22 July 2022 which further impacted visitation, revenue and profitability. In Q2 2022, Group Net Revenue was $2.4 billion, down 56% year-on-year and down 41% quarter-on-quarter. Group Adjusted EBITDA was $(0.4) billion, versus $1.1 billion in Q2 2021 and $0.6 billion in Q1 2022.

Our balance sheet remains liquid and healthy. As of 30 June 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion. Core debt remains relatively unchanged at $0.3 billion. This provides us with valuable flexibility in managing operations and supporting our development initiatives. Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend. We paid the previously announced special dividend of $0.30 per share on 29 April 2022.

During the quarter, we optimized our City Club operations and ceased business at Rio Casino and President Casino. All gaming related staff have been reassigned to our other properties.

Moving on to our development update, we continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests. We also continue to invest in Macau with our Cotai Phase 3 effectively completed and continue to move forward with Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai. As you can see, we remain confident about the future of Macau where Cotai Phases 3 & 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure.

Going forward in the medium to longer term, we remain confident in the future of Macau. However, we do acknowledge that further potential outbreaks of COVID-19 may impact our future financial performance. Finally, I would again like to thank the Macau Government and the health and emergency personnel who have worked so hard to ensure the safety of Macau. I would also like to thank our staff, management team and Board of Directors who voluntarily contributed to the various cost savings programs and for being so supportive of our Company throughout the pandemic. Thank you.

Dr. Lui Che Woo

GBM, MBE, JP, LLD, DSSc, DBA

Chairman

Q2 & Interim 2022 RESULTS HIGHLIGHTS

GEG: Continues to be Impacted by COVID-19 and Travel Restrictions 1H Group Net Revenue of $6.5 billion, down 39% year-on-year 1H Group Adjusted EBITDA of $191 million, down 90% year-on-year 1H Net Loss Attributable to Shareholders of $850 million, versus profit of $947 million in 1H 2021 Q2 Group Net Revenue of $2.4 billion, down 56% year-on-year and down 41% quarter-on-quarter Q2 Group Adjusted EBITDA of $(384) million, versus $1,132 million in Q2 2021 and $575 million in Q1 2022 Normalized Q2 Adjusted EBITDA was $(408) million after adjusting for good luck of $24 million Latest twelve months Adjusted EBITDA of $1.7 billion, down 16% year-on-year and down 47% quarter-on-quarter  Galaxy MacauTM: Continues to be Impacted by COVID-19 and Travel Restrictions 1H Net Revenue of $4.5 billion, down 38% year-on-year 1H Adjusted EBITDA of $536 million, down 68% year-on-year Q2 Net Revenue of $1.4 billion, down 62% year-on-year and down 53% quarter-on-quarter Q2 Adjusted EBITDA of $(188) million, versus $924 million in Q2 2021 and $724 million in Q1 2022 Normalized Q2 Adjusted EBITDA was $(212) million after adjusting for good luck of $24 million Hotel occupancy for Q2 across the five hotels was 28%  StarWorld Macau: Continues to be Impacted by COVID-19 and Travel Restrictions 1H Net Revenue of $644 million, down 67% year-on-year 1H Adjusted EBITDA of $(216) million, versus $305 million in 1H 2021 Q2 Net Revenue of $220 million, down 76% year-on-year and down 48% quarter-on-quarter Q2 Adjusted EBITDA of $(158) million, versus $135 million in Q2 2021 and $(58) million in Q1 2022 There was no luck impact on Q2 Adjusted EBITDA Hotel occupancy for Q2 was 33%  Broadway Macau™: Continues to be Impacted by COVID-19 and Travel Restrictions 1H Net Revenue of $31 million, up 7% year-on-year 1H Adjusted EBITDA of $(36) million, versus $(43) million in 1H 2021 Q2 Net Revenue of $15 million, versus $14 million in Q2 2021 and $16 million in Q1 2022 Q2 Adjusted EBITDA of $(19) million, versus $(20) million in Q2 2021 and $(17) million in Q1 2022 There was no luck impact on Q2 Adjusted EBITDA Hotel occupancy for Q2 was 32%  Balance Sheet: Maintain a Healthy and Liquid Balance Sheet As at 30 June 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion As at 30 June 2022, core debt was $0.3 billion Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend. We paid the previously announced special dividend of $0.30 per share on 29 April 2022  Development Update: Continue Making Progress on Cotai Phases 3 & 4 Continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Cotai Phases 3 & 4 – Phase 3 is effectively completed and our efforts are firmly focused on the development of Phase 4. Phases 3 & 4 have a strong focus on non-gaming, primarily targeting MICE, entertainment, family facilities and also include gaming Will align the opening of Raffles at Galaxy Macau with prevailing market conditions, followed by the opening of Galaxy International Convention Center (“GICC”) and Andaz Macau, while proceeding with the construction of remaining phases

Macau Market Overview

The performance of tourism and gaming industries were adversely impacted by travel restrictions and a COVID-19 outbreak in Macau during Q2 and 1H 2022. Based on DICJ reporting, Macau’s Gross Gaming Revenue (“GGR”) for Q2 2022 was $8.2 billion, down 67% year-on-year and down 52% quarter-on-quarter.

In Q2 2022, due to increased cases of COVID-19 and the associated travel restrictions and quarantine rules, visitor arrivals to Macau were 1.6 million, down 27% year-on-year and down 15% quarter-on-quarter. Visitor arrivals from the Mainland were 1.4 million, down 29% year-on-year and down 18% quarter-on-quarter. Overnight visitors were 0.5 million, down 49% year-on-year and down 14% quarter-on-quarter.

Group Financial Results

1H 2022

The Group’s 1H 2022 results posted Net Revenue of $6.5 billion, down 39% year-on-year and Adjusted EBITDA was $191 million, down 90% year-on-year. Net loss attributable to shareholders was $850 million, versus profit of $947 million in 1H 2021. Galaxy Macau™’s Adjusted EBITDA was $536 million, down 68% year-on-year. StarWorld Macau’s Adjusted EBITDA was $(216) million, versus $305 million in 1H 2021. Broadway Macau™’s Adjusted EBITDA was $(36) million, versus $(43) million in 1H 2021.

In 1H 2022, GEG experienced good luck in its gaming operation, which increased its Adjusted EBITDA by approximately $27 million. Normalized 1H 2022 Adjusted EBITDA was $164 million, down 91% year-on-year.

The Group’s total GGR on a management basis¹ in 1H 2022 was $4.8 billion, down 51% year-on-year. Mass GGR was $3.8 billion, down 35% year-on-year. Rolling chip GGR was $719 million, down 79% year-on-year. Electronic GGR was $238 million, down 29% year-on-year.

Group Key Financial Data
(HK$’m)		1H 2021		1H 2022
Revenues:
Net Gaming		7,841		4,130
Non-gaming		1,389		1,079
Construction Materials		1,431		1,315
Total Net Revenue		10,661		6,524
Adjusted EBITDA		1,991		191
Gaming Statistics2
(HK$’m)		1H 2021		1H 2022
Rolling Chip Volume		99,9713		21,5604
Win Rate %		3.5%		3.3%
Win		3,506		719
Mass Table Drop5		24,465		14,073
Win Rate %		24.2%		27.1%
Win		5,910		3,817
Electronic Gaming Volume		8,996		7,019
Win Rate %		3.7%		3.4%
Win		333		238
Total GGR Win6		9,749		4,774

Q2 2022

In Q2 2022, the Group posted Net Revenue of $2.4 billion, down 56% year-on-year and down 41% quarter-on-quarter. Adjusted EBITDA was $(384) million, versus $1,132 million in Q2 2021 and $575 million in Q1 2022. Galaxy Macau™’s Adjusted EBITDA was $(188) million, versus $924 million in Q2 2021 and $724 in Q1 2022. StarWorld Macau’s Adjusted EBITDA was $(158) million, versus $135 million in Q2 2021 and $(58) million in Q1 2022. Broadway Macau™’s Adjusted EBITDA was $(19) million versus $(20) million in Q2 2021 and $(17) million in Q1 2022.

Latest twelve months Adjusted EBITDA was $1.7 billion, down 16% year-on-year and down 47% quarter-on-quarter.

In Q2 2022, GEG experienced good luck in its gaming operations which increased Adjusted EBITDA by approximately $24 million. Normalized Q2 2022 Adjusted EBITDA was $(408) million, versus $1.1 billion in Q2 2021 and $572 million in Q1 2022.

Summary Table of GEG Q2 & 1H 2022 Adjusted EBITDA and Adjustments:
in HK$’m		Q2 2021		Q1 2022		Q2 2022			1H 2021		1H 2022
Adjusted EBITDA		1,132		575		(384	)		1,991		191
Luck7		81		3		24			189		27
Normalized Adjusted EBITDA		1,051		572		(408	)		1,802		164

The Group’s total GGR on a management basis⁸ in Q2 2022 was $1.4 billion, down 72% year-on-year and down 59% quarter-on-quarter. Mass GGR was $1.2 billion, down 62% year-on-year and down 56% quarter-on-quarter. Rolling chip GGR was $153 million, down 91% year-on-year and down 73% quarter-on-quarter. Electronic GGR was $76 million, down 63% year-on-year and down 53% quarter-on-quarter.

Group Key Financial Data
(HK$’m)
		Q2 2021			Q1 2022						Q2 2022					1H 2021				1H 2022
Revenues:
Net Gaming		3,984			2,902						1,228					7,841				4,130
Non-gaming		791			623						456					1,389				1,079
Construction Materials		790			575						740					1,431				1,315
Total Net Revenue		5,565			4,100						2,424					10,661				6,524
Adjusted EBITDA		1,132			575						(384		)			1,991				191
Gaming Statistics1
(HK$’m)
		Q2 2021			Q1 2022						Q2 2022					1H 2021				1H 2022
Rolling Chip Volume		44,6372			17,9143						3,64611					99,97110				21,56011
Win Rate %		3.8	%		3.2	%					4.2			%		3.5		%		3.3	%
Win		1,694			566						153					3,506				719
Mass Table Drop4		12,880			9,463						4,610					24,465				14,073
Win Rate %		23.8	%		28.0	%					25.3			%		24.2		%		27.1	%
Win		3,061			2,652						1,165					5,910				3,817
Electronic Gaming Volume		4,801			4,380						2,639					8,996				7,019
Win Rate %		4.2	%		3.7	%					2.9			%		3.7		%		3.4	%
Win		203			162						76					333				238
Total GGR Win5		4,958			3,380						1,394					9,749				4,774

Balance Sheet and Dividend

Due to our conservative financial management, our balance sheet continues to remain strong. As of 30 June 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion. Total debt was $8.7 billion which primarily reflects our ongoing treasury yield management initiatives where interest income on cash holdings exceeds corresponding borrowing costs. Core debt remained minimal at $0.3 billion. This provides us with valuable flexibility in managing our ongoing operations and allows us to continue investing in our longer term development plans. Given the ongoing impact of COVID-19, today the Board of Directors has decided not to declare a dividend. We paid the previously announced special dividend of $0.30 per share on 29 April 2022.

Galaxy Macau™

Galaxy Macau™ is the primary contributor to the Group’s revenue and earnings. Net Revenue in 1H 2022 was $4.5 billion, down 38% year-on-year. Adjusted EBITDA was $536 million, down 68% year-on-year. In 1H 2022, Galaxy Macau™ experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $27 million. Normalized 1H 2022 Adjusted EBITDA was $509 million, versus $1.5 billion in 1H 2021.

In Q2 2022, Galaxy Macau™’s Adjusted EBITDA was $(188) million, versus $924 million in Q2 2021 and $724 million in Q1 2022. In Q2 2022, Galaxy Macau™ experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $24 million. Normalized Q2 2022 Adjusted EBITDA was $(212) million, versus $842 million in Q2 2021 and $721 million in Q1 2022.

The combined five hotels occupancy rate was 33% for 1H 2022 and 28% for Q2 2022.

Galaxy Macau™ Key Financial Data
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Revenues:
Net Gaming		3,079			2,503			1,016			5,954			3,519
Hotel / F&B / Others		307			228			175			557			403
Mall		423			346			244			715			590
Total Net Revenue		3,809			3,077			1,435			7,226			4,512
Adjusted EBITDA		924			724			(188	)		1,688			536
Adjusted EBITDA Margin		24	%		24	%		NEG14			23	%		12	%
Gaming Statistics15
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Rolling Chip Volume		32,51116			17,91417			3,64617			73,22216			21,56017
Win Rate %		4.1	%		3.2	%		4.2	%		3.6	%		3.3	%
Win		1,331			566			153			2,632			719
Mass Table Drop18		7,972			6,627			3,317			15,100			9,944
Win Rate %		27.8	%		32.0	%		27.6	%		28.1	%		30.5	%
Win		2,219			2,121			915			4,238			3,036
Electronic Gaming Volume		3,513			3,021			1,589			6,680			4,610
Win Rate %		4.9	%		4.5	%		3.4	%		4.1	%		4.1	%
Win		174			136			54			276			190
Total GGR Win		3,724			2,823			1,122			7,146			3,945

StarWorld Macau

StarWorld Macau’s Net Revenue was $644 million in 1H 2022, down 67% year-on-year. Adjusted EBITDA was $(216) million, versus $305 million in 1H 2021. There was no luck impact on 1H 2022 Adjusted EBITDA.

In Q2 2022, StarWorld Macau’s Adjusted EBITDA was $(158) million, versus $135 million in Q2 2021 and $(58) million in Q1 2022. There was no luck impact on Q2 2022 Adjusted EBITDA.

Hotel occupancy was 42% for 1H 2022 and 33% for Q2 2022.

StarWorld Macau Key Financial Data
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Revenues:
Net Gaming		885			391			198			1,857			589
Hotel / F&B / Others		40			27			17			74			44
Mall		7			6			5			14			11
Total Net Revenue		932			424			220			1,945			644
Adjusted EBITDA		135			(58	)		(158	)		305			(216	)
Adjusted EBITDA Margin		14	%		NEG19			NEG19			16	%		NEG19
Gaming Statistics20
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Rolling Chip Volume21		12,126			0			0			25,809			0
Win Rate %		3.0	%		0			0			3.2	%		0
Win		363			0			0			833			0
Mass Table Drop22		4,064			2,183			982			7,854			3,165
Win Rate %		17.3	%		18.8	%		20.6	%		18.2	%		19.3	%
Win		702			410			202			1,429			612
Electronic Gaming Volume		664			475			342			1,184			817
Win Rate %		2.5	%		2.2	%		2.4	%		2.9	%		2.3	%
Win		16			10			9			34			19
Total GGR Win		1,081			420			211			2,296			631

Broadway Macau™

Broadway Macau™ is a unique family friendly, street entertainment and food resort supported by Macau SMEs. Broadway Macau™’s Net Revenue was $31 million for 1H 2022 versus $29 million for 1H 2021. Adjusted EBITDA was $(36) million for 1H 2022 versus $(43) million in 1H 2021. There was no luck impact on 1H 2022 Adjusted EBITDA.

In Q2 2022, Broadway Macau™’s Adjusted EBITDA was $(19) million, versus $(20) million in Q2 2021 and $(17) million in Q1 2022. There was no luck impact on Q2 2022 Adjusted EBITDA.

Hotel occupancy was 28% for 1H 2022 and 32% for Q2 2022 as the hotel served as a self-health management hotel.

Broadway Macau™ Key Financial Data
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Revenues:
Net Gaming		0			0			0			0			0
Hotel / F&B / Others		7			9			10			16			19
Mall		7			7			5			13			12
Total Net Revenue		14			16			15			29			31
Adjusted EBITDA		(20	)		(17	)		(19	)		(43	)		(36	)
Adjusted EBITDA Margin		NEG23			NEG23			NEG23			NEG23			NEG23
Gaming Statistics24
(HK$’m)
		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Electronic Gaming Volume		3			3			1			16			4
Win Rate %		6.6	%		9.0	%		2.3	%		4.0	%		6.4	%
Win		1			0			0			1			0
Total GGR Win		1			0			0			1			0

City Clubs

City Clubs contributed $19 million of Adjusted EBITDA to the Group’s earnings for 1H 2022, down 37% year-on-year. Q2 2022 Adjusted EBITDA was $11 million, down 45% year-on-year and up 38% quarter-on-quarter. Effective from 26 June 2022, we ceased operations at Rio Casino and President Casino with the aim to optimize the Company’s operational scale. All gaming related staff have been reassigned to our other properties.

City Clubs Key Financial Data
(HK$’m)		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Adjusted EBITDA		20			8			11			30			19
Gaming Statistics25
(HK$’m)
		Q2 2021			Q1 2022			Q2 2022			1H 2021			1H 2022
Rolling Chip Volume26		0			0			0			940			0
Win Rate %		0			0			0			4.4	%		0
Win		0			0			0			41			0
Mass Table Drop27		844			653			311			1,511			964
Win Rate %		16.7	%		18.5	%		15.4	%		16.1	%		17.5	%
Win		140			121			48			243			169
Electronic Gaming Volume		621			881			707			1,116			1,588
Win Rate %		1.9	%		1.8	%		1.9	%		2.0	%		1.8	%
Win		12			16			13			22			29
Total GGR Win		152			137			61			306			198

Construction Materials Division

Construction Materials Division (“CMD”) contributed Adjusted EBITDA of $289 million in 1H 2022, down 35% year-on-year. CMD delivered a solid performance in Q2 2022 with Adjusted EBITDA of $170 million, down 41% year-on-year and up 43% quarter-on-quarter. During Q2 2022 the sale of construction materials was impacted by the various COVID-19 lockdowns within Mainland China and associated temporary suspension of construction sites.

Development Update

Galaxy Macau™ and StarWorld Macau

We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests.

Cotai – The Next Chapter

GEG is uniquely positioned for long term growth. Phase 3 is effectively completed and we look forward to welcoming the iconic Raffles at Galaxy Macau through an exclusive 450 all-suite tower. We will align the opening with prevailing market conditions. We intend to follow this with the opening of the GICC and Andaz Macau in anticipation of the recovery of the MICE and entertainment markets.

We are now firmly focused on the development of Phase 4, which is already well under way. We see the premium market evolving with this segment preferring higher quality and more spacious rooms. We continue to proceed with the construction of Cotai Phase 4, our next generation integrated resort, which will complete our ecosystem in Cotai.

Phases 3 & 4 combined will have approximately 3,000 high end and family rooms and villas, 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, F&B, retail and casinos, among others. As you can see, we remain highly confident about the future of Macau where Cotai Phases 3 & 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure.

Selected Major Awards in 2022
AWARD	PRESENTER
GEG
Charitable Community Award	International Gaming Awards 2022
GALAXY MACAUTM
Macao Green Hotel Award 2021 – Environmental Performance Gold Award – Hotel Okura Macau	Environmental Protection Bureau (DSPA)
EarthCheck Certified 2022    - Gold Certification – Banyan Tree Macau    - Silver Certification – Galaxy Hotel™	EarthCheck
Michelin Guide Hotel Selection    - Banyan Tree Macau    - JW Marriott Hotel Macau    - The Ritz-Carlton, Macau   Michelin One Star Restaurant    - 8½ Otto e Mezzo BOMBANA    - Lai Heen   Michelin Selected Restaurant    - Terrazza Italian Restaurant    - Yamazato    - The Ritz-Carlton Café	Michelin Guide Hong Kong and Macau 2022
Forbes Travel Guide Five-star Hotel    - The Ritz-Carlton, Macau    - Banyan Tree Macau    - Hotel Okura Macau   Forbes Travel Guide Five-star Restaurant    - Lai Heen   Forbes Travel Guide Five-star Spa    - The Ritz-Carlton Spa, Macau    - Banyan Tree Spa Macau	Forbes Travel Guide
South China Morning Post 100 Top Tables 2022    - Lai Heen    - 8½ Otto e Mezzo BOMBANA    - Yamazato	South China Morning Post
Traveler’s Choice Awards – Best of the Best – The Ritz-Carlton, Macau	Tripadvisor Traveler’s Choice Awards
Reader’s Choice Awards 2022 Top 10 Best Hotels in Macau    - Banyan Tree Macau (Silver)    - Galaxy Hotel™ (Bronze)	DestinAsian
The Most Popular Hotel Award – Hotel Okura Macau	Hotelbeds
LEED V4 Gold Certificate – Galaxy Macau Phase 3 (MICE)	U.S. Green Building Council
STARWORLD MACAU
Michelin Two Stars Restaurant – Feng Wei Ju	Michelin Guide Hong Kong and Macau 2022
South China Morning Post 100 Top Tables 2022 – Feng Wei Ju	South China Morning Post
BROADWAY MACAUTM
Macao Green Hotel Award 2021 – Environmental Performance Silver Award – Broadway HotelTM	Environmental Protection Bureau (DSPA)
Construction Materials Division
Caring Company Logo 2021/22 – 20 Years Plus Caring Company Logo	The Hong Kong Council of Social Service

Outlook

Despite the recent challenging experience in Macau, we remain confident in the longer term outlook for Macau in general and GEG specifically. Macau experienced a COVID-19 outbreak that resulted in the suspension of casinos for a period of 12 days in July 2022. During this difficult period, the Macau Government has continued to demonstrate their prompt and decisive action. We greatly appreciated their efforts and thank all of the health and emergency personnel and volunteers. Macau’s public health and safety as well as economic and social stability remains the Government’s highest priority.

We continue to support the Macau Government’s COVID-19 prevention efforts, by providing hotels for quarantine and medical personnel. We continue to support the community and local employment including the reopening of our casinos on 23 July 2022. We would also like to acknowledge and thank our staff for participating in our various voluntary community programs.

Our balance sheet continues to remain healthy and solid with net cash of $20.3 billion. Core debt remained minimal with zero debt associated with our Macau operations. We are well positioned to navigate through the pandemic.

We continue to support the economic development of Macau through our Cotai Phases 3 & 4 projects which positions us strongly for the future growth in leisure and tourism demand from Mainland China. The Central Government continues to support the further integration of Greater Bay Area through the development of infrastructure. The new Guangzhou Metro Line 18 Southern Extension Line which connects Nansha to Zhuhai is starting ground preparation work. This will further increase the connectivity between Guangdong Province and Macau. In the medium to longer term, we have great confidence in the future of Macau. But in the shorter term, the reoccurrence of COVID-19 outbreaks may continue to impact visitor arrivals and associated revenues, as well as our future financial performance.

Contacts

For Media Enquiries:

Galaxy Entertainment Group – Investor Relations

Mr. Peter J. Caveny / Ms. Yoko Ku / Ms. Joyce Fung

Tel: +852 3150 1111 Email: ir@galaxyentertainment.com

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