Galaxy posts positive financials as Japan IR expansion prospects appeal

Galaxy Entertainment Group (GEG) has reported healthy financial results in its Q2 and H1 2018 update, which has seen the group record its tenth consecutive quarter of year-on-year (yoy) EBITDA growth.

Group adjusted EBITDA for the second quarter of the year shows a 32 per cent yoy increase to a record HK$4.3bn (US$550m), which helped its first half figures reach HK8.6bn (US$1.1bn), a 34 per cent boost.

Group net revenue for Q2 came in at HK13.9bn (US$1.77bn), a 22 per cent yoy rise, with H1 figures driven forward 22 per cent to HK28.1bn (US$3.58bn).

Breaking down the figures further, GEG also reports that its Galaxy Macau, StarWorld Macau and Broadway Macau properties all contributed significantly to yoy H1 net revenue increases, reporting HK19.8bn (US$2.52bn), up 25 per cent, HK6.3bn (US$800m), up 28 per cent yoy and HK273m (US$34m), a four per cent yoy jump, respectively

GEG, who in April closed its transaction of purchasing a passive minority investment of 4.9 per cent in Wynn Resorts for HK7.28bn (US$927.5), also provided updates on other significant developments.

Dr. Lui Che Woo, chairman of the group, commented: “On the development front, GEG continued to move forward with its Cotai Phases 3 & 4, which will include approximately 4,500 hotel rooms, including family and premium high end rooms, significant MICE space, a 16,000-seat multi-purpose arena, food and beverage, retail and casinos, among others.

“Further, 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. 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.

“We remain confident in the outlook for Macau, and GEG specifically, over the longer term due to the significant market demand for leisure, tourism and travel. However, we do acknowledge that in the shorter term the global trade tensions, currency volatility and the overall slowing economy may impact consumer confidence in the second half of 2018.

“We look forward to the opening of additional infrastructure projects, such as Hong Kong-Zhuhai-Macau Bridge and the extended train line that will support the future growth of Macau, and the integration of the Greater Bay Area.

“Finally, I would like to thank all our team members who deliver ‘World Class, Asian Heart’ service every day and contribute to the success of the Group.”