Gambling operator Galaxy Entertainment Group Ltd. presented today selected unaudited results for the three months ended March 31, 2016. Overall revenue dropped 2% year-on-year to HK$13.4 billion. Adjusted EBITDA for the period amounted to HK$2.4 billion, up 6% as compared to the figure posted for the same three months of 2015.
The company’s Galaxy Macau property generated quarterly revenue of HK$9.8 billion, up 6% year-on-year. Adjusted EBITDA totaled HK$2 billion, representing a 12% increase from the first quarter of 2015. Galaxy Entertainment said that Galaxy Macau’s earnings were generated mainly by its mass market and non-gaming offerings.
Revenue from StarWorld Macau amounted to HK$2.9 billion, down 26% year-on-year. Adjusted EBITDA dropped 15% to HK$512 million. The considerable decrease was attributed to lower than expected VIP volumes as the property is still transitioning its operations to mass market.
Broadway Macau generated revenue of HK$181 million and adjusted EBITDA of HK$3 million. The venue does not offer VIP gambling options. The casino operator said that the “bad luck in gaming operations” reduced adjusted EBITDA by HK$1 million in the three months ended March 31.
City Clubs, a chain of gaming venues spread around Macau, contributed the amount of HK$26 million in adjusted EBITDA, down from the HK$31 million generated in the first quarter of 2015. Galaxy Entertainment’s construction materials division reported adjusted EBITDA of HK$92 million, up from the amount of HK$48 million posted for the same period a year ago.
Commenting on the casino company’s financial performance during the first quarter of the year, Chairman Dr. Lui Che Woo said that Galaxy Entertainment is still adjusting to the changes in Macau’s gambling market but he noted that the operator has had a solid start to the year.
The executive further explained that the they will remain focused on managing their cost structure and executing operationally. Galaxy Entertainment will also keep on driving its every segment and allocating resources to the best use.
The official revealed details about Phase 3 of their Galaxy Macau property. The project’s third phase is expected to include a number of MICE facilities and is aimed to represent a response to the Macau government’s request for local gambling operators to present tourists with more diverse options aside from gambling ones, thus turning the popular casino destination into a preferred leisure and entertainment hub.
