Galaxy Entertainment Group (GEG) has continued to shine in 2018 with group-wide net revenue jumping 22% year-on-year in 2Q18 to HK$13.9 billion, led by surging VIP but complemented by solid gains across all sectors.
GEG’s total gross gaming revenue on a management basis – which includes revenue from City Clubs on top of resort revenue – was HK$17.2 billion, up 29% year-on-year. It comprised a 38% increase in VIP GGR to HK$9.8 billion, a 20% increase in mass table GGR to HK$6.8 billion and an 11% increase in electronic gaming machine revenue to HK$600 million.
Group Adjusted EBITDA climbed 32% year-on-year to a record HK$4.3 billion, including a 30% increase at Galaxy Macau to HK$3.2 billion. StarWorld Macau’s Adjusted EBITDA increased 29% year-on-year to HK$987 million with Broadway Macau’s Adjusted EBITDA doubling to HK$2 million versus $1 million in 2Q17.
Galaxy Macau
At flagship property Galaxy Macau, VIP GGR for the quarter was HK$7.3 billion – up 51% year-on-year and pushing VIP revenue for the first six months of the year to HK$14.5 billion. Galaxy Macau’s rolling chip volume for the first half jumped 56% year-on-year to HK$413.4 billion.
Mass gaming revenue increased 20% in the second quarter to HK$4.6 billion and 17% for the half to HK$9.1 billion while EGM revenue grew 8% for the quarter and 10% for the half to a six-month total of HK$982 million.
StarWorld Macau
VIP rolling chip volume increased 29% year-on-year to HK$162 billion in the first six months of 2018, translating to GGR of HK$5.1 billion. It included second quarter GGR of HK$2.4 billion, up 15% year-on-year.
Mass GGR grew 19% for the quarter and 26% for the half to HK$1.7 billion and HK$3.4 billion respectively while EGM GGR grew 27% in 1H18 to HK$89 million.
Broadway Macau
Broadway saw its net revenue increase slightly in 1H18 to HK$273 million despite a 5% decline in mass GGR to HK$132 million for the half and an 8% fall for the quarter to HK$59 million.
The non-VIP venue, located alongside Galaxy Macau, enjoyed increases in the EGM and non-gaming space with 2Q18 EGM GGR up 50% year-on-year to HK$12 million and 1H18 GGR up 37% year on year to HK$22 million.
Non-gaming revenue grew 11% for the first six months of the year to HK$119 million.
GEG Chairman Lui Che Woo announced that the company would pay a dividend of HK$0.50 per share on 26 October 2018.
“We continued to drive every segment of the business and yield our resorts which translated into record EBITDA,” he said of the second quarter and half year results. “We are very pleased to report that for both second quarter and the first half, our resort hotels reported virtually 100% occupancy.
“Our balance sheet continued to be exceptionally strong and liquid with total cash and liquid investments of HK$42.9 billion and net cash of HK$34.3 billion. Our exceptionally strong balance sheet allows us to return capital to shareholders through dividends and to fund our development pipeline and our international expansion ambitions.”
Lui added that the company was pushing forward strongly on its three primary expansion initiatives – Galaxy Phases 2 and 3, Japan and a non-gaming entity in Hengqin, the hi-tech Chinese city being developed just a stone’s throw from Macau and set to become a central player in the Greater Bay Area.
“We are advancing the conceptual plans for our development in Hengqin for a low density integrated resort that will complement our high energy resorts in Macau,” he said. “The group has a clearly defined growth development pipeline.
“I am very pleased with the recent passing of the Integrated Resort Bill in Japan. We view Japan as a great long term growth opportunity that will complement our Macau operations and our other international expansion ambitions. GEG, together with Monte-Carlo SBM from the Principality of Monaco and our Japanese partners, look forward to bringing our brand of world class IRs to the country.”
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