Macau casino operator Galaxy Entertainment Group today reported record half-year EBITDA (earnings before interest, taxation, depreciation and amortisation) of HK$1.8 billion (US$230.8 million)—up 84% year-on-year
In the unaudited results, announced in Hong Kong, the company said it was the 11th consecutive quarter of group EBITDA growth, and the 12th consecutive quarter EBITDA growth for its Macau peninsula property StarWorld Hotel & Casino. Galaxy Macau™, the company’s new resort on Cotai, launched on 15th May, achieved EBITDA of HK$376 million in its first 47 days of operation up to and including 30th June.
Adjusted net profit attributable to shareholders more than doubled from HK$0.6 billion to HK$1.3 billion for the six months ended 30 June 2011 after adjusting for an one-off HK$0.8 billion pre-opening expenses of Galaxy Macau, and also HK$0.2 billion non-recurring non-cash charges relating to convertible notes, and HK$0.1 billion net loss on buyback of guaranteed notes
StarWorld’s performance at-a-glance included:
*half year EBITDA of HK$1.3 billion, up 53% year-on-year
*half year total revenue of HK$10 billion
*12th consecutive quarter of EBITDA growth with 2Q 2011 EBITDA of HK$685 million
*2Q 2011 VIP rolling chip volume of HK$158 billion
*continuously improving ROI (based on the total EBITDA for the latest twelve months divided by the total investment, including land cost) of 74% in Q2 2011
Galaxy Macau’s performance at-a-glance included:
*on-time opening on a 7% increase in budget to HK$16.5 billion (US$2.12 billion) due primarily
to increased construction labour costs. The company said the resort’s full complement of 2,200 rooms is due to open in 4Q 2011
*the entertainment offering including the 3D-Cineplex is included within the project budget and will open in Q4 2011
*EBITDA of HK$376 million for the first 47 days of operation
GEG balance sheet
*liquid with total cash on hand of HK$6.7 billion as of 30th June, 2011 (including restricted cash of HK$1.6 billion)
Dr Che-woo Lui, Chairman of GEG said: “The first half 2011 has produced very strong results. I am delighted with the opening of Galaxy Macau and the exceptional results of
StarWorld. Across each of our divisions we have seen healthy growth and a positive contribution to the Group.
“The opening of Galaxy Macau enhanced StarWorld’s position and StarWorld posted a series of all-time records. StarWorld delivered one of the highest returns of any major casino in the world.
The growth of the company shows no signs of slowing and with the largest contiguous land bank in Cotai, GEG is well positioned to capitalise on the growth of Macau.”
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