Yesterday, November 11, hotel and casino owner and operator Galaxy Entertainment Group announced its unaudited quarterly revenue. Unlike its Macau-based rivals, the company can boast of a 6-percent rise in its turnover as compared to its last year’s financial performance. In other words, it generated a total of HK$17.3 billion in the past three months.
Galaxy’s casinos gained HK$11.8 billion from its high stakes players which was 5 percent more than last year’s VIP revenue. As for its mass market turnover, it also marked a 12-percent increase amounting to HK$4.8 billion.
Galaxy Entertainment Group’s overall earnings before the subtraction of interest, taxes, depreciation and amortization amounted to HK$3.3 billion, marking a one-percent increase. The profits of Galaxy Macau solely rose by 4%, adding up to HK$2.4 billion. The overall turnover of the Cotai-based venue rose by 11%. That makes a total of HK$11.1 billion for the period between July 1 and September 30.
Lui Che Woo, owner of Galaxy Entertainment Group, shared that the company’s improved performance indicated that it had managed to cope with the “strong macro headwinds”, pointing to Macau’s overall financial situation, which, as we were reported earlier, is not as glamorous as it was initially expected.
Despite the Group’s increased revenue, not all of its subsidiary companies did that well in the past three months. StarWorld, the hotel and casino venue, situated on the Peninsula, reported a 0.5-percent drop in its turnover, which amounted to HK$5.7 billion. Its adjusted earnings also fell by 0.7% to HK$904 million, as compared to its last year’s EBITDA.
Galaxy reported on 2.55-percent increase in its share price which makes HK$52.35 per share. What is more, on October 31 the company paid to its shareholders the total amount of HK$1.9 billion or, in other words, HK$0.45 per share.
Karen Tang, analyst in Deutsche Bank called GEG’s quarterly financial performance “respectable”, considering the fact that the high stakes market is facing a wide number of challenges.
Lui shared that he was optimistic about Macau’s future and also announced that Galaxy Macau Phase 2 was on budget and will be finished by mid-2015, just as it was initially planned. Once the project is completed, the company will offer 500 more gambling tables to its players. In addition, 1,3000 more rooms will accommodate its guests.
Galaxy’s owner also informed that the plans for the Grand Waldo’s future redevelopment will be officially released in January. The company’s goal is to offer a venue, intended to welcome middle class families. In addition, Galaxy will expand its territory on the Cotai Strip even more, being allowed to build more than 21.5 million square feet. The construction process will cost the company about HK$60 million.
