Galaxy Entertainment Group announces selected unaudited Q3 2018 financial data

Galaxy Entertainment Group today reported selected unaudited financial data for the three months period ended 30 September 2018. 

The firm recorded a 6 per cent year-on-year rise in revenues in the third quarter of 2018 to reach around HK$13 billion (US$1.65 billion), the group revealed on its latest financial report release on Thursday.

Meanwhile, Adjusted EBITDA increased 10 per cent to HK$$3.9 billion but decreased 10 per cent quarter-on-quarter. In terms of the group’s total gross gaming revenues on a management basis, results went up 6 per cent year-on-year to HK$15.8 billion.

The firm's mass market table results went up 8 per cent yearly to HK$6.6 billion, while VIP results rose 5 per cent to HK$8.6 billion between July and September.

On quarterly terms, however, the group’s net revenues dropped 7 per cent quarter-to quarter, with mass results and VIP going down 3 per cent and 12 per cent, respectively.

‘It should be noted that during the quarter gaming operations played unlucky which reduced EBITDA by approximately HK$0.3 billion. Additionally, Macau experienced adverse impacts from both the World Cup in July and Typhoon Mangkhut in September,’ the GEG Chairman Francis Lui Che Woo indicated on the release.

The GEG Chairman stated that the continued growth in the rapidly emerging and under-penetrated middle-class in Mainland China and their demand for leisure and travel gave the group confidence in the longer term outlook for Macau, but admitting that the US-China trade war, coupled with rising interest rates and a slowing economy, could ‘impact consumer sentiment in the short term

The group’s Galaxy Macau property continued to generate the largest amount in revenues, with results up 7 per cent yearly to HK$9.3 billion – down 6 per cent q-on-q – and adjusted EBITDA up 9 per cent to US$3.0 billion, down 8 per cent q-on-q.

StarWorld Macau’s net revenue rose 7 per cent yearly to HK$2.9 billion with adjusted EBITDA rising 16 per cent to HK$927 million, but also registering quarterly declines.

The group also noted the passage on July 20, 2018 by the Japanese Diet of an Integrated Resort Bill, with GEG seeing Japan as a ‘great long term growth opportunity that will complement our Macau operations and our other international expansion ambitions’.

GEG, established a partnership with Monte-Carlo SBM from the Principality of Monaco for a future integrated resort project in Japan.

‘Our balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders through special dividends and to fund our development pipeline and international expansion plans. These include Cotai Phases 3 & 4, Hengqin and Japan,’ Francis Lui indicated.

GEg is still developing Phases 3 & 4 of its Galaxy Macau expansion, which will include approximately 4,500 hotel rooms, including family and premium high end rooms, 400,000 square feet of MICE space, a 500,000 square feet 16,000-seat multi-purpose arena, F&B, retail and casinos.