Supplier News
China – Galaxy records 11th quarter of growth
By Phil - 29 May 2014
Galaxy Entertainment Group saw a 38 per cent rise in first-quarter revenues as the Macau casino operator with the most space to expand continued to attract more and more customers.
Adjusted earnings before interest, taxes, depreciation and amortisation increased to HK$3.8bn in the first quarter. Revenue rose 33 per cent to HK$20.2bn
The increase represented Galaxy’s 11th consecutive quarter of Adjusted EBITDA growth, up 44 per cent year-on-year and 10 per cent sequentially, to $2.8bn. Revenue of $12.8bn, represented an increase of 44 per cent year-on-year and nine per cent sequentially.
Both mass and VIP net win were up by 47 per cent to $3.3bn and $8.7bn respectively on a year-on-year basis in the first quarter. Non-gaming revenue in the quarter remained broadly in line with the same period last year, but grew 7seven per cent quarter-on-quarter to $375m. Hotel occupancy at Galaxy Macau which encompasses three five star hotels was 98 per cent.
StarWorld Macau achieved its highest ever quarterly revenue of $6.8 billion, an increase of 19 per cent year-on-year and 8eight per cent sequentially; and record quarterly Adjusted EBITDA of $1.1bn. These results were driven by a healthy 43 per cent year-on-year increase in mass revenue to $1.1bn. StarWorld Macau also delivered a strong performance in VIP, with revenue up 16 per cent year-on-year and 12 per cent sequentially to $5.6bn.
Building on the success of Phase 1, GEG is progressing well with its construction of Phase 2 of Galaxy Macau. Set to almost double the footprint of the existing property, and due to complete on budget and on schedule by mid-2015 as Macau’s next major project. Cotai Phases 3 & 4 design plans are in the final stages and we expect to commence construction as early as late 2014 with an investment of $50 to $60bn.
Refitting works are well underway at the Grand Waldo Complex. The company said it anticipated unveiling our plans in mid 2014 and re-launching the property in early 2015. It is strategically located adjacent to Galaxy Macau and will be complementary to the Cotai development. Analysts believe that with the cap on tables in place, the plan is to transfer existing tables from Grand Waldo to Phase 2 of Galaxy Macau.
Dr. Lui Che Woo, Chairman of GEG said: “2014 has begun well for the Group and for Macau as a whole. GEG’s success is underpinned by our commitment to provide customers with a truly memorable experience, by offering the highest quality resort facilities and delivering ‘World Class, Asian Heart’ service. We believe that this truly differentiates GEG. Both Galaxy Macau and StarWorld Macau performed very well during the quarter. Revenue and earnings at Galaxy Macau continued to increase in a sustainable way. As an established property, StarWorld Macau’s year-on-year growth was especially noteworthy, driven by growing mass gaming revenues. Our future remains bright. Construction of Phase 2 of Galaxy Macau is on budget and on schedule to complete by mid-2015, providing our customers with an ever wider array of quality facilities and services. Construction of Phases 3 and 4 will begin as early as the end of the year, refitting works are underway at the Grand Waldo Complex and plans for our site on Hengqin Island are moving forward. We also continue to explore new opportunities to expand our success beyond Macau. We are confident that our development pipeline will translate into sustainable future earnings growth and enhance value for our shareholders.
The Galaxy Chairman and his family own about 51 per cent of Galaxy, which has seen him become Asia’s third-richest person with an estimated net worth of US$18bn.
