With net revenue growing 14% year-on-year to HK$55.2 billion and adjusted EBITDA up 19% to HK$16.9 billion, Galaxy Entertainment Group (GEG) dodged a 2018 undermined by geo-political and economic issues, the company said on Thursday in its annual results release.
Galaxy said that global trade tensions, a slowing Chinese economy, rising interest rates, currency fluctuations and also the introduction of smoking restrictions in the Macau SAR impacted investor sentiment, causing periods of volatility.
Notwithstanding those issues, Galaxy’s GGR on a management basis in 2018 was HK$67.2 billion, up 16% year-on-year, with VIP GGR up 18% to HK$37.3 billion and mass table GGR up 14% to HK$27.5 billion. EGM revenue rose 15% to HK$2.5 billion.
The group experienced bad luck in its gaming operation during 2018, which decreased its adjusted EBITDA by approximately HK$484 million. This bad luck also negatively impacted adjusted property EBITDA at Galaxy Macau by HK$434 million in 2018.
Nonetheless, Galaxy Macau’s FY18 net revenue increased 14% year-on-year to HK$39.5 billion. Adjusted EBITDA was up 16% to HK$12.9 billion.
Peninsula property StarWorld recorded HK$12.2 billion in net revenue in 2018, up 18% year-on-year, with adjusted EBITDA up 28% to HK$3.8 billion.
Broadway Macau kept improving with 2018 net revenue increasing 9% year-on-year to HK$562 million, and adjusted EBITDA of HK$32 million for 2018 versus HK$10 million in 2017.
Quarterly results
GEG’s Q418 net revenue was up 2% year-on-year and 9% quarter-on-quarter to HK$14.2 billion, with adjusted EBITDA up 4% year-on-year and 12% quarter-on-quarter to HK$4.3 billion.
At Galaxy Macau, net revenue in 4Q18 rose 2% year-on-year and 11% quarter-on-quarter to HK$10.4 billion.
StarWorld revenue reached HK$3 billion, up 12% year-on-year and 2% quarter-on-quarter.
Quarterly net revenue at Broadway Macau was down 1% both year-on-year and quarter-on-quarter to HK$144 million.
