Hong Kong-listed Galaxy Entertainment Group has released its unaudited financial results for the first quarter showing a 5% increase year-on-year in overall revenues to $1.81 billion alongside a 31% rise in earnings before interest, tax, depreciation and amortization to $411.21 million.
Galaxy Entertainment Group operates the Galaxy Macau, StarWorld Macau and Broadway Casino in Macau and recorded total gaming revenues of $1.68 billion for the three-month period to the end of March, which was a boost of 4% year-on-year, while annual adjusted annual earnings before interest, tax, depreciation and amortization grew by 34% to hit $398.36 million.
“We continue to drive each and every segment of our business with a particular focus on yielding our resorts and delivering profitable volumes,” read a statement from Lui Che Woo, Chairman for Galaxy Entertainment Group. “Our emphasis on executing our renowned “World Class, Asian Heart” service combined with our unique and world-class resorts have delivered memorable customer experiences and resulted in our portfolio of hotels being virtually 100% occupied during the period even as recent new competitive capacity continues to ramp up.”
Galaxy Entertainment Group is also responsible for Macau’s President Casino, Rio Casino and Waldo Casino and stated that total mass-market table games revenues for the quarter rose by 15% year-on-year to $745.33 million although VIP takings declined by 5% to $873.82 million “as a modest volume increase was more than offset by not playing as lucky”.
In terms of individual performances, Galaxy Entertainment Group explained that its Galaxy Macau development had posted a 5% swell year-on-year in first-quarter revenues to $1.31 billion while its adjusted earnings before interest, tax, depreciation and amortization had improved by 27% to approximately $334.11 million. For its StarWorld Macau venue, quarterly takings strengthened by 6% to $398.36 million while a 27% bump took three-month earnings to $83.39 million with the nearby Broadway Casino reporting a 25.4% decline in revenues to $17.34 million although earnings doubled to just over $771,000.
“The continuing growth in the emerging middle-class on the mainland and their appetite for leisure, tourism and travel gives us continued confidence in the longer-term outlook for Macau,” read the statement from Woo. “Galaxy Entertainment Group is embarking on its next growth program and will soon commence construction of Cotai: The Next Chapter, which will include meetings, incentives conferences and events, hotel, entertainment and gaming. Galaxy Entertainment Group has the largest and most well-defined development growth pipeline of all Macau concessionaires.”
Finally, Galaxy Entertainment Group declared that its first-quarter balance sheet “remains liquid and healthy” and that it held cash and investments worth about $3.21 billion while its total debt had fallen by almost 12% since the end of 2016 to stand at $668.24 million.