Galaxy results suggest Macau ‘stabilisation’

25 August 2016

Galaxy Entertainment, the largest casino operator in Macau, beat analysts’ predictions as it registered an encouraging second quarter of 2016.

According to a trading update that suggested the “stabilisation” of Macau’s gaming sector after two years of decline, Galaxy’s net profit for the six months to June 30 increased by 26% year-on-year to HK$2.6 billion (€300 million / $340 million).

Overall group revenue and adjusted EBITDA was up 1% to HK$25.5 billion, while adjusted EBITDA increased by 13% to HK$4.7 billion.

Galaxy, which has a 23% market share of Macau’s casino and resorts industry, said revenue at its flagship Galaxy Macau was up by 8% to HK$18.5 billion, with VIP spend down 16% to HK$245.8 billion.

StarWorld Macau revenue dropped by 22% to HK$5.6 billion, while Galaxy’s new Broadway Macau saw takings of HK$350 million.

Adjusted EBITDA for Q2 was HK$2.3 billion compared with the HK$2.25 billion median estimate of five analysts surveyed by Bloomberg.

Chairman Lui Che Woo said: “Galaxy has announced solid financial results for the first half of 2016 as the Macau market continued to show gradual signs of stabilisation.

“Galaxy Macau, with its large mass segment and non-gaming entertainment amenities, is the main contributor to our results.

"This coupled with StarWorld Macau’s ongoing steady transition to a Mass focused operation illustrates the broadening of GEG’s footprint and the expansion of its non-gaming offering.”

Related article: Galaxy profits fail to rocket in 2015