Publishing financial results for the 12 months to December 31, Galaxy Entertainment Group, operator of three casinos in Macau, reported record earnings (adjusted EBITDA) of HK$14.1bn (€1.47bn), a 37 per cent increase on 2016.
This was boosted by a fourth-quarter adjusted EBITDA of HK$4.2bn (€440m), a 40 per cent year-on-year growth and up 18 per cent on Q3. The last three months of 2017 represented the group’s eighth consecutive quarter of year-on-year growth.
Full-year group revenue increased by 18 per cent year on year to HK$62.5bn (€6.54bn). Galaxy Macau and StarWorld both saw significant increases, with full-year adjusted EBITDA jumping more than 30 per cent at both properties, to HK$11.1bn (€1.16bn) and HK$3.0bn (€310m) respectively.
There was however a comparatively small fall in both revenue and adjusted EBITDA at Broadway Macau. The family-focused resort saw revenue drop to HK$514m (€53.8m) in 2017, down from HK$676m (€70.7m) in 2016, while full-year adjusted EBITDA was HK$10m (€1.05m), against HK$30m (€3.14m) a year prior.
The positive results came as Galaxy Entertainment Group provided optimistic updates on proposals for Cotai and early plans for a “destination resort” on Hengqin, an island in Guangdong province.
The company was is also exploring other opportunities beyond Macau, in Japan and also in the Philippines where Galaxy has plans to develop an “eco-friendly” beach resort on Boracay Island.
Dr Lui Che Woo, chairman of GEG, said in a statement: “Our balance sheet remains one of the strongest in global gaming with cash and liquid investments of HK$41.4bn (€4.33bn) and net cash of HK$31.7bn (€3.32bn).
“Our stable cash flows combined with a strong balance sheet provides us with great flexibility in funding our development pipeline and international expansion opportunities. These include Cotai ohases three and four, Hengqin, Japan and Boracay in the Philippines.”
Providing an outlook for the next trading periods, Galaxy said it remains confident in its outlook for Macau. “In the short term, the mainland Chinese economy has been performing solidly while new Macau property openings in 2018 should further stimulate tourism demand,” the company said in a statement.
“In addition, the opening of the Hong Kong-Zhuhai-Macau Bridge will significantly improve accessibility for international travellers who arrive by air via Hong Kong. In the medium to longer term, tourist markets in mainland China and Asia remain dramatically under-penetrated, offering opportunities for significant growth in tourism, leisure and travel.”