Asian casino giant Galaxy Entertainment Group Limited has released its unaudited financial results for the three months to the end of March showing that it chalked up a 32% increase year-on-year in overall revenues to HK$18.5 billion ($2.35 billion) led by the performance of its Galaxy Macau property.
Hong Kong-based Galaxy Entertainment Group Limited is also responsible for the StarWorld Macau and Broadway Casino venues in Macau and declared that the first three months of 2018 saw it record a ninth consecutive quarter of year-on-year earnings before interest, tax, depreciation and amortization growth as the most recent figure swelled by 36% when compared with the same period last year to hit HK$4.3 billion ($547.77 million).
Galaxy Entertainment Group Limited conversely stated that it had ‘played unlucky’ in terms of first-quarter adjusted gaming earnings before interest, tax, depreciation and amortization as the overall tally decreased by approximately HK$98 million ($12.48 million) year-on-year although it still ended the three-month period with HK$34.5 billion ($4.39 billion) in net cash alongside liquid investments of HK$41.8 billion ($5.32 billion).
“We continue to drive each and every segment of our business with a particular focus on yielding our resorts,” read a statement (pdf) from Lui Che Woo, Chairman of Galaxy Entertainment Group Limited. “Our renowned World Class, Asian Heart service combined with our differentiated resort offerings have delivered memorable customer experiences and resulted in our portfolio of hotels reporting virtually 100% occupancy.”
In terms of individual properties, Galaxy Entertainment Group Limited described its Galaxy Macau venue as the ‘primary profit contributor’ and detailed that the venue had recorded overall first-quarter revenues of HK$13 billion ($1.65 billion), which represented a rise of 27% year-on-year. It proclaimed that the 2,200-room Cotai Strip development had seen its adjusted earnings before interest, tax, depreciation and amortization for the three-month period improve by 26% to HK$3.3 billion ($420.39 million) although gaming receipts had dropped by approximately HK$177 million ($22.54 million).
For its StarWorld Macau, the operator proclaimed that overall first-quarter revenues had climbed by 45% year-on-year to hit HK$4.5 billion ($573.27 million) while the venue’s adjusted earnings before interest, tax, depreciation and amortization escalated by 55% to reach HK$1 billion ($127.39 million). In contrast to its larger counterpart, the 507-room downtown development reportedly recorded a 38% boost in quarterly gaming receipts to HK$927 million ($118.09 million), which moreover signified an 8% advance quarter-on-quarter.
Finally, Galaxy Entertainment Group Limited divulged that its 320-room Broadway Casino venue posted overall revenues for the initial three months of 2018 of HK$142 million ($18.08 million), which represented a 5% strengthening year-on-year. This Cotai Strip venue additionally saw its adjusted first-quarter earnings before interest, tax, depreciation and amortization improve by almost 117% to reach HK$13 million ($1.65 million) while its gaming receipts rose by over 42% to HK$10 million ($1.27 million).
“We remain confident in the longer term outlook for Macau in general and Galaxy Entertainment Group Limited specifically,” read a statement from Galaxy Entertainment Group Limited. “Our confidence is supported by unchanged fundamentals including the Chinese economy continues to perform solidly, the tourist markets in mainland China and Asia remain underpenetrated and offer substantial potential for growth in tourism, leisure and travel and new Macau property openings in 2018 will further stimulate tourism demand.”