Key Moments:
- Emperor Entertainment’s third-quarter revenue dropped 17.7% to HKD335.6 million
- Gaming revenue for Q3 fell by 29.64%, reaching HKD177.9 million
- Adjusted EBITDA for the six months to 30 September stood at HKD45.2 million, while net loss narrowed to HKD73.1 million
Revenue Contracts Sharply Following Casino Closure
Emperor Entertainment recorded a significant decline in third-quarter revenue, posting HKD335.6 million – down 17.7% compared to the HKD407.9 million achieved during the same period last year. This drop was largely attributed to weaker gaming performance and the group’s decision to close its satellite casino operation at the end of October. In its filing with the Hong Kong Stock Exchange, the company highlighted these factors as the main drivers behind the downturn.
Impact of Satellite Casino Shutdown
The closure of the satellite casino, formerly operating under an SJM licence, took place on 30 October. This action positioned Emperor Entertainment among those operators who exited the satellite model ahead of the government’s 31 December deadline. The shutdown had an immediate effect on revenues, as it removed a key source of income and significantly influenced the group’s activities moving into the year’s final quarter.
The ongoing transition away from the satellite casino model is emblematic of the broader changes occurring across Macau’s regulatory landscape. Operators are now either restructuring their partnerships or fully withdrawing as the government tightens its oversight through an updated concession framework.
Gaming Segment Experiences Steep Decline
Gaming revenue was hit particularly hard, dropping 29.64% to HKD177.9 million when compared with the previous year’s third quarter. This decrease was directly linked to the cessation of operations at the satellite casino and decreased activity among the remaining gaming assets. The downturn in gaming returns was not substantially offset by other business segments, resulting in an overall reduction in the group’s consolidated quarterly earnings.
Six-Month EBITDA Drops, but Net Loss Narrows
For the six-month period ending 30 September, Emperor Entertainment reported adjusted EBITDA of HKD45.2 million, a notable decrease from last year’s figure of HKD99.56 million. The diminished performance was a result of lower contributions from gaming and the impact of the regulatory transition. However, the net loss for the group improved, narrowing to HKD73.1 million from HKD225.7 million last year. The improvement was largely credited to ongoing cost reductions and a decrease in exceptional charges across operations.
Macau’s Regulatory Overhaul Alters Industry Landscape
Operators in Macau continue to adapt to rapidly changing concession rules as the government pushes the satellite casino model toward its regulatory conclusion. Emperor Entertainment’s move to exit the satellite system is in line with a wider market trend, as the 31 December deadline draws closer and prompts further consolidation throughout the sector.
| Financial Metric | Q3 or Period Value | Previous Year Value | Change (%) |
|---|---|---|---|
| Revenue (Q3) | HKD335.6 million | HKD407.9 million | -17.7 |
| Gaming Revenue (Q3) | HKD177.9 million | – | -29.64 |
| Adjusted EBITDA (6 months to 30 Sep) | HKD45.2 million | HKD99.56 million | – |
| Net Loss (6 months to 30 Sep) | HKD73.1 million | HKD225.7 million | – |
- Author
Daniel Williams
