Supplier News

China – Galaxy reports record third quarter revenues

By Phil - 7 November 2013

With Macau casino revenue surging by 32 per cent to a record monthly total of 36.5bn patacas ($4.57bn) in October, it is no surprise to see Galaxy Entertainment, one of its leading operators doing likewise.

The operator of Star World and Galaxy Macau posted record quarterly revenue of HK$16.3bn, an increase of 16 per cent year-on-year for its third quarter with adjusted EBITDA of $3.2bn up 24 per cent year-on-year.

Dr. Lui Che-woo, Chairman of GEG, said: “We continue to build our high quality Galaxy brand and strive to be ‘Globally recognised as Asia’s leading gaming and entertainment corporation’.  Our service philosophy is to provide our guests with a memorable customer experience by offering the highest quality resort facilities and by delivering ‘World Class, Asian Heart’ service.  We believe that this is what truly differentiates Galaxy.

“Our efforts to deliver on our vision have translated into another set of record quarterly results.  The Group’s results were driven by the high quality service performances of our two flagship properties, Galaxy Macau and StarWorld Macau,” he continued. “The exciting plans for Phase 2 of Galaxy Macau remain on schedule, and will further fulfill our promise of providing customers with quality facilities and service.Looking ahead, Macau and the region are set to prosper for many years to come as major infrastructure works come on stream that will greatly improve access to Macau from Mainland China and transform travel within the region.”

Galaxy Macau delivered its ninth consecutive quarter of Adjusted EBITDA growth at $2.3bn, an increase of 31 per cent year-on-year and 10 per cent quarter-on-quarter. Revenue of $10bn, grew 20 per cent year-on-year and eight per cent sequentially.

StarWorld Macau meanwhile achieved its highest ever quarter of Adjusted EBITDA at $910m, an increase of eight per cent year-on-year.

In July 2013, GEG completed the $3.25bn acquisition of the Grand Waldo Complex.  Located across the street from Galaxy Macau and the Group’s Cotai landbank, the Grand Waldo Complex is strategically important to GEG’s development pipeline. We continue to work on exciting renovation plans and we anticipate to be able to share those plans in early 2014.

Dr. Che-woo added: “GEG continues to execute operationally resulting in record quarterly revenue and earnings at a Group level driven by strong operational performance across the board led by Galaxy Macau and StarWorld Macau.  As the Macau gaming market continues to evolve and cater to the mass market, a broader customer group from the Mainland in particular is visiting Macau. A key component in the Group’s success is its ‘World Class, Asian Heart’ product and service philosophy. Understanding the changing tastes and demands of the customer is extremely important in this dynamic market, and GEG has tailored its offer at both flagship properties to strengthen their appeal and maximise returns.”

He said that Macau’s prospects for the remainder of this year and beyond were very bright. “Considerable progress is being made on the development side including the construction of Phase 2 of Galaxy Macau and our plans for Cotai Phases 3 and 4,” he explained. “Set to complete in parallel alongside major infrastructure improvements, GEG is confident these developments will capture the imagination of the next generation of visitors to Macau, unlock the Group’s earnings potential for many years to come, and support Macau’s efforts to diversify its economy and become a world tourism destination.”