Galaxy Entertainment Posts Strong Performance In Q1 Results
The Galaxy Entertainment Group, one of Macau’s six casino operators released its unaudited financial results for the first quarter of 2016, reporting a strong performance for the quarter.
According its latest financial statements, the casino operator has registered a quarterly revenue of HK$13.4 billion (US$1.7 billion) which is an increase of 1 percent over its last quarter but a drop of 2 percent year on year. It has reported HK$2.4 billion as its adjusted EBITDA for the quarter, a decrease of 2 percent over the previous quarter but an increase of 6 percent year on year.
Galaxy Entertainment said that robust performance in the mass segment was the major reason for these results and added that its hotels were almost fully booked for the quarter. Commenting on the results, Dr. LuiChe Woo, chairman of Galaxy Entertainment Group stated that the company was seeing signs of stabilization in Macau’s casino industry and remains convinced of its long-term potential. You can have a look at the US online casinos which are available to players from USA to play online from here.
The results also disclosed casino-wise revenue, which showed its flagship property Galaxy Macau in Cotai witnessing strong growth. The adjusted EBITDA for Galaxy Macau was HK$2 billion, an increase of 12 percent year on year, while StarWorld Macau posted HK$512 million, declining sharply by 15 percent year on year. Broadway Macau registered HK$3 million as its adjusted EBITDA for the quarter.
LuiChe-Woo earlier said that the group was going to focus on mass market gamblers and family tourists. The company is in the process of building a high-tech amusement park inspired by the movie Avatar. The site investigation for Phases 3 and 4 of Galaxy Macau is scheduled to start later this year. The Group has also announced its plans to build a resort in the island of Hengqin, a special economic zone in neighboring Guangdong province.
Brokerage firm Bernstein noted that the first quarter results were better than anticipated but there was still potential to improve. In a statement, Bernstein said,
“We still see Galaxy as underperforming its true potential in Mass. Galaxy has the largest land inventory in Cotai and in the long-run, this land bank could be the key to continuing to reposition towards a Mass focus (especially with increase in hotel room inventory and MICE capabilities).”
According to analysts with the firm, the company has been benefitting from the operations of Phase 2 of Galaxy Macau, the overall stabilization of the market and the shift in capacity from VIP to Mass and Premium Mass. Measures taken by the company to reduce costs have also had a positive effect on revenue.
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