Galaxy Entertainment Group (GEG) announced a 12% year-on-year increase in revenue and 81.5% profit boost for the six months to 30 June, but was also forced to issue a lengthy statement from its Chairman, Dr Lui Che Woo, in the wake of widespread criticism over the company’s actions in the wake Typhoon Hato.
Galaxy has found itself at the center of a storm, so to speak, amid accusations – which Inside Asian Gaming understands are largely unfounded given GEG is known to have sent volunteers to aid relief efforts early on – that it placed clean-up efforts of its Galaxy Pool Deck ahead of efforts to assist the city as a whole.
In a filing to the Hong Kong Stock Exchange early Thursday, GEG pledged MOP$60 million to support relief efforts for the people of Macau, including MOP$30 million from the GEG Foundation and MOP$30 million from the Lui family itself.
“I wish to share with you my personal grief on the devastating impact of Typhoons Hato and Pakhar experienced by everyone in the Macau community, a place where we all call home,” Dr Lui said.
“On Wednesday August 23rd, Typhoon Hato, the most powerful and destructive Typhoon in over half a century, swiftly descended on Macau and caused wide spread damage to Macau and significant hardship to its citizens including many of our Team Members. GEG’s properties were damaged, but fortunately, there were only minor injuries reported which was such a big relief to me and the whole GEG family.
“We greatly appreciate every single person who has contributed their time and effort to help during such a difficult time. However, I would like to express my sincere condolences to the family and friends of the people who perished and the citizens who sustained injury as a result of the devastating destruction brought by the two typhoons plus so many who have suffered.
“Macau has endured the storm and is now focused on recovering and rebuilding with the helping hands of many, including GEG, which is a testament to the will, strength and character of the Macau people. The community is rallying around each other and together we will all move forward with a very bright future. We too at GEG will continue to actively support the community in these challenging times. Our teams at Galaxy Macau, StarWorld Macau and Broadway Macau are contributing to the relief efforts in a variety of ways ranging from substantial donations of goods and services including food, water and trucks for debris removal to a number of team members volunteering to help Macau in areas of need from clean up efforts to delivering food and water to the elderly.
“We can all learn from this traumatizing experience and be better prepared in the future, including GEG. I encourage unity within society to work together to rebuild our community.” GEG’s typhoon relief efforts come as the company enjoyed a surge in revenue for the six months to 30 June 2017 to HK$28.54 billion, up from HK$25.54 billion in the same period 12 months earlier. Profit in 1H17 grew even further to HK$4.64 billion, having come in at HK$2.56 billion in the prior period.
The company’s gaming segment contributed the vast majority of that revenue, HK$27.08 billion, with mass table games revenue up 15% to HK$11.4 billion, VIP revenue up 5% to HK$13.9 billion and ETG revenue rising 12% to HK$1.1 billion.
Adjusted EBITDA grew 29% year-on-year to HK$6.47 billion.
Galaxy Macau saw its revenue increase 8% in 1H17 to HK$20.1 billion, despite bad luck decreasing its Adjusted EBITDA by approximately HK$30 million in 1H 2017. Normalized EBITDA was HK$5.1 billion, up 35% year-on-year.
VIP rolling chip volume for the period was HK$264.7 billion, an 8% year-on-year increase, with VIP revenue up 1% to HK$9.9 billion. Mass gaming revenue grew 20% to HK$7.8 billion.
Revenue at StarWorld grew 20% for the first six months of the year to HK$6.7 billion, with Adjusted EBITDA up 45% year-on-year to HK$1.4 billion. It included a 19% increase in VIP rolling chip volume to HK$125.8 billion and a 22% increase in VIP revenue to HK$3.8 billion, while mass gaming grew 17% to HK$2.7 billion, up 17% year-on-year.
Broadway Macau, which is mass market only and relies heavily on its non-gaming attractions, saw revenues decline for the period by 25.1% to HK$262 million with mass gaming revenue of HK$139 million.
