Hong Kong-listed Galaxy Entertainment Group has released its unaudited financial results for the third quarter showing that it experienced a 5% increase year-on-year in overall revenues to $1.66 billion while recording its highest three-month profit for two years at $348.13 million.
Galaxy Entertainment Group operates the Galaxy Macau, StarWorld Macau and Broadway Casino in Macau and recorded gross gaming revenues for the three month’s to the end of September of $6.88 billion, which represented a 1% rise year-on-year, as visitor numbers grew by 0.1% to 8.1 million with the average length of stay improving by 0.1 day to 1.3 days.
“We have enjoyed a solid third quarter this year with reported group adjusted earnings before interest, tax, depreciation and amortization of $348.13 million, [which is] up by 28% year-on-year and up 18% quarter-on-quarter,” said Lui Che Woo, Chairman for Galaxy Entertainment Group, which is also responsible for Macau’s President Casino, Rio Casino and Waldo Casino. “Macau continues to transition to the mass-market and Galaxy Entertainment Group continues to align our business with the direction of the market and allocate resources to their highest and best use. We are encouraged by the continuing signs of market stabilization, yet it remains too early to call the bottom of the market. The recently reported growth in monthly revenues in August and September followed by a strong Golden Week in October are encouraging signs but we would like some more time before calling it a definitive trend.”
Galaxy Entertainment Group reported overall third-quarter revenues from its Galaxy Macau property of $1.21 billion, which was a swell of some 8% year-on-year, while the venue’s adjusted earnings before interest, tax, depreciation and amortization for the three-month period improved by 31% to reach $283.64 million.
Regarding its StarWorld Macau property, Galaxy Entertainment saw total third-quarter revenues decrease by 5% year-on-year to $360.98 million although its quarterly adjusted earnings before interest, tax, depreciation and amortization of $69.1 million represented a boost of 4%.
For its Broadway Casino, Galaxy Entertainment Group recorded overall revenues for the third quarter of $21.53 million, which was a decline of 12% year-on-year, while the Cotai Strip property’s adjusted earnings before interest, tax, depreciation and amortization improved by 17% quarter-on-quarter to hit $902,517.
“Underlying visitor demand remains solid with [our] hotels remaining virtually fully occupied during the period,” said Woo. “The opening of additional hotel rooms and resort related amenities at Galaxy Macau Phase Two and Broadway Macau in 2015 saw an increase in the number of visitors who stayed overnight. Importantly, visitors that stay overnight generally had a higher spend per customer with a particular focus on higher margin non-gaming spend.”