PR Newswire
HONG KONG, Feb. 28, 2017
HONG KONG, Feb. 28, 2017 /PRNewswire/ -- Galaxy Entertainment Group Limited ("GEG" or the "Group") (HKEx stock code: 27) today reported results for the three months and twelve months periods ended 31 December 2016. (All amounts are expressed in Hong Kong dollars unless otherwise stated)
Q4 2016 & FULL YEAR HIGHLIGHTS
GEG: Continues to Drive Mass Business, Profitable Volumes and Control Costs
Galaxy Macau™: Strong Performance Driven by Mass
StarWorld Macau: Delivers Another Solid Quarter Driven by Mass
Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported by Macau SMEs
Balance Sheet: Remains Well Capitalized and Liquid
Development Update: Robust Growth Development Pipeline
Dr. Lui Che Woo, Chairman of GEG said:
"We are pleased to report our financial results for the three months and twelve months periods ending 31 December 2016. We have delivered very credible and solid results given the challenging operating environment that we experienced for the majority of 2016. Despite these challenges, the Group reported Q4 Adjusted EBITDA of $3.0 billion, up 10% quarter-on-quarter and full year Adjusted EBITDA of $10.3 billion up 18% year-on-year.
We have worked hard during the period to carefully control costs without adversely impacting customer service standards and to substantially grow our Mass Market business. Our portfolio of luxury hotels were virtually 100% occupied during the year and we reported non-gaming revenue of $3.2 billion an increase of 18% year-on-year; this demonstrates our commitment to support the Macau Government's efforts to diversify the economy and grow non-gaming revenue.
During the year, we paid two special dividends of $0.15 and $0.18 per share. And I am pleased to announce today that we will pay another special dividend of $0.26 per share this year on or about 28 April 2017, a 73% increase compared to April 2016. This confirms our commitment to return capital to shareholders, whilst maintaining an exceptionally strong and liquid balance sheet to fund our growth development pipeline and international expansion ambitions.
In the medium to longer term we are positive on the outlook for Macau and are confident that Macau will develop into a World Center of Tourism and Leisure as envisioned by the Macau Government and we are pleased to be able to support this Government lead vision.
Finally, I would like to extend my sincere appreciation to all of our committed and hard-working staff who deliver exceptional customer moments and are committed to our renowned 'World Class, Asian Heart' service philosophy."
Market Overview
The Macau gaming market finished the year on a positive note where from August onwards, Gross Gaming Revenue ("GGR") reported positive growth. In addition to the growth of GGR in the later part of 2016, the market also experienced a shift in the mix of gaming revenue from VIP to the Mass market.
Visitation to Macau in 2016 was 30.95 million compared to 30.71 million in 2015. However with the addition of new hotel capacity during the year overnight visitation has increased for seven consecutive months since June 2016 and was up 10% year-on-year to 15.7 million for the full year. For the first time in the last ten years, overnight-stay visitor arrivals exceeded same-day visitor arrivals. In 2016, the average length of stay of overnight visitors stood at 2.1 days. This is a particularly encouraging sign as new capacity has driven increased overnight visitation and it is estimated that overnight visitors spend more than day trippers.
In 2016 infrastructure designed to enable easier access to Macau and movement within Macau continued to progress and we look forward to the completion of these infrastructure projects. These projects will further enhance the appeal and easy of travel to and from Macau and travel within Macau for both Chinese and International visitors.
Group Financial Results
Financial Year of 2016
The Group posted revenue of $52.8 billion, up 4% year-on-year, and generating Adjusted EBITDA of $10.3 billion, up 18% year-on-year in 2016. Net profit attributable to shareholders was $6.3 billion. Galaxy Macau™'s Adjusted EBITDA was $8.5 billion, up 22% year-on-year. StarWorld Macau's Adjusted EBITDA was $2.2 billion, down 2% year-on-year. Broadway Macau™'s Adjusted EBITDA was $30 million Vs $(7) million in 2015.
GEG experienced good luck in its gaming operation during 2016, which increased its Adjusted EBITDA by approximately $480 million. Normalized 2016 Adjusted EBITDA grew 10% year-on-year to $9.9 billion.
The Group's total gaming revenue on a management basis[1] in 2016 was $49.5 billion, up 2% year-on-year as total mass table games revenue was $21.0 billion, up 19% year-on-year and total VIP revenue was $26.5 billion, down 8% year-on-year.
Photo - http://photos.prnasia.com/prnh/20170228/8521701252-a
Balance Sheet, Treasury Management and Special Dividends
The Group's balance sheet remains liquid and healthy. As of 31 December 2016, cash and liquid investments were $22.6 billion and net cash was $16.7 billion. Total debt increased from $1.2 billion at 31 December 2015 to $5.9 billion at 31 December 2016. This was due solely to a treasury management exercise where interest income on cash holdings exceeds corresponding borrowing costs. Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders via dividends and to fund our development pipeline and international expansion ambitions.
In 2016, GEG returned capital to shareholders by paying two special dividends of $0.15 per share and $0.18 per share on 29 April 2016 and 28 October 2016, respectively. Subsequently the Group announced another special dividend of $0.26 per share to be paid on or about 28 April 2017, a 73% increase compared to April 2016.
Q4 of 2016
Finishing the year on a positive note, Q4 Group revenue increased 11% quarter-on-quarter to $14.4 billion and Adjusted EBITDA increased 10% quarter-to-quarter to $3.0 billion. Galaxy Macau™'s Adjusted EBITDA increased 16% year-on-year to $2.4 billion. StarWorld Macau's Adjusted EBITDA increased 14% year-on-year to $637 million in Q4. Broadway Macau™'s Adjusted EBITDA was $14 million Vs $(4) million in 2015.
During Q4 2016, GEG experienced good luck in gaming operations which increased Adjusted EBITDA by approximately $150 million. Normalized Q4 2016 Adjusted EBITDA grew 20% year-on-year and 15% quarter-on-quarter to $2.8 billion.
The Group's total gaming revenue on a management basis[2] in Q4 2016 increased 7% year-on-year to $13.3 billion as total mass table games revenue increased by 15% year-on-year to $5.6 billion while total VIP revenue increased 3% year-on-year to $7.2 billion.
Photo - http://photos.prnasia.com/prnh/20170228/8521701252-b
Galaxy Macau™
Galaxy Macau™ is the primary contributor to Group revenue and earnings. Revenue in the year was up 7% year-on-year to $38.0 billion. Adjusted EBITDA was up 22% year-on-year to $8.5 billion. Adjusted EBITDA margin under HKFRS increased to 22% (2015: 20%), or 28% under US GAAP (2015: 25%).
Galaxy Macau™ experienced good luck in its gaming operations which increased its Adjusted EBITDA by approximately $460 million in 2016. Normalized 2016 Adjusted EBITDA grew 12% year-on-year to $8.0 billion.
Q4 Adjusted EBITDA was up 7% quarter-on-quarter to $2.4 billion, which included approximately $100 million of good luck in Q4. Q4 Adjusted EBITDA margin under HKFRS increased to 23% (Q4 2015: 21%), or 30% under US GAAP (Q4 2015: 26%). Normalized Q4 2016 Adjusted EBITDA grew 17% year-on-year and 14% quarter-on-quarter to $2.3 billion.
VIP Gaming Performance
Total VIP rolling chip volume for the year was $491 billion, down 12% year-on-year. This translated to revenue of $20 billion, down 2% year-on-year. Q4 revenue was $5.1 billion, a decrease of 2% year-on-year and increased 10% quarter-on-quarter.
VIP Gaming
HK$'m | Q4 2015 | Q3 2016 | Q4 2016 | QoQ% | YoY% | FY2015 | FY2016 | YOY% |
Turnover | 136,630 | 117,048 | 127,814 | 9% | (6%) | 555,142 | 490,694 | (12%) |
Net Win | 5,177 | 4,617 | 5,057 | 10% | (2%) | 19,940 | 19,540 | (2%) |
Win % | 3.8% | 3.9% | 4.0% | -- | -- | 3.6% | 4.0% | -- |
Mass Gaming Performance
Mass gaming revenue increased 20% year-on-year to $14 billion for 2016. Q4 revenue increased 20% year-on-year to $3.9 billion, and was up 8% quarter-on-quarter.
Mass Gaming
HK$'m | Q4 2015 | Q3 2016 | Q4 2016 | QoQ% | YoY% | FY2015 | FY2016 | YOY% |
Table Drop | 7,410 | 8,103 | 8,375 | 3% | 13% | 26,984 | 32,046 | 19% |
Net Win | 3,217 Werbung Mehr Nachrichten zur Galaxy Entertainment Aktie kostenlos abonnieren
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