PR Newswire
HONG KONG, May 3, 2018
Record Adjusted EBITDA in Q1 of $4.3 Billion, Up 36% YoY and 4% QoQ
Record Normalized Adjusted EBITDA in Q1 of $4.4 Billion, Up 41% YoY and 8% QoQ
9th Consecutive Quarter of YoY EBITDA Growth
Completed Passive Minority Investment in Wynn Resorts
Actively Pursuing Japan with an Expanding Senior Team
Strategically Expanding Brand with US$300 to $500 Million Eco-Friendly Resort in Boracay
Paid a Special Dividend of $0.41 Per Share on 27 April 2018
HONG KONG, May 3, 2018 /PRNewswire/ -- Galaxy Entertainment Group ("GEG" or the "Group") (HKEx stock code: 27) today reported selected unaudited financial data for the three month period ended 31 March 2018. (All amounts are expressed in Hong Kong dollars unless otherwise stated)
Q1 2018 RESULTS HIGHLIGHTS
GEG: Delivered Another Record Performance, Driven By Record Mass, Strong VIP And Operational Execution
Galaxy Macau™: 9th Consecutive Quarter of YoY EBITDA Growth, Despite Playing Unlucky
StarWorld Macau: 7th Consecutive Quarter of YoY EBITDA Growth Driven By Record Mass
Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs
Balance Sheet: Remains Well Capitalized, Liquid and Virtually Unlevered
Development Update: Robust Development Pipeline including Macau, Philippines, Japan and Hengqin
Dr. Lui Che Woo, Chairman of GEG said:
"I am very pleased to report that we have experienced a positive start to 2018, with all-time record quarterly Adjusted EBITDA of $4.3 billion. This represents our 9th consecutive quarter of EBITDA growth despite competitive new capacity being added to the market.
We continue to drive each and every segment of our business with a particular focus on yielding our resorts. GEG's renowned 'World Class, Asian Heart' service combined with our differentiated resorts offerings have delivered memorable customer experiences and resulted in our portfolio of hotels reporting virtually 100% occupancy.
Our balance sheet remains one of the strongest in global gaming with cash and liquid investments of $41.8 billion and net cash of $34.5 billion. Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders through dividends and to fund our development pipeline and international expansion plans. These include Cotai Phases 3 & 4, Hengqin, Japan and the Philippines. On 28 February 2018 we announced another special dividend, which was paid on 27 April 2018. The dividend was $0.41 per share which was a 58% increase compared to the previous April dividend.
The first quarter was a very productive one for GEG in terms of our development initiatives. In March 2018, we announced our plans to develop a premium quality, eco-friendly beach resort in Boracay, Philippines. We support President Duterte's and the Philippine Government's initiative to clean-up and restore the pristine isle of Boracay.
In March 2018, we also announced a passive minority equity investment in Wynn Resorts, Limited ("Wynn Resorts") which we closed in early April 2018.
We continue to actively pursue Japan and subsequently announced that we enhanced and will continue to expand our team in Japan with the appointment of Mr. Ted Chan as Chief Operating Officer ("COO") - Japan Development.
GEG is embarking on its next growth program with the construction of its Cotai Phases 3 & 4, which will include 4,500 hotel rooms, including family and premium high end rooms, significant MICE space, a 16,000-seat arena, F&B, retail and casinos, among others. GEG has the largest and the most well-defined development growth pipeline of any Macau concessionaire.
We are committed to continue to support the Macau Government's vision to develop Macau into a World Centre of Tourism and Leisure as demonstrated by GEG's Cotai Phases 3 & 4 and our planned development in Hengqin. Additionally, the Group supports the Central Government's Greater Bay Area integration program, as well as leveraging on the Belt & Road initiative by our proposed beach front resort development in the Philippine island of Boracay.
The continued growth in the rapidly emerging and underpenetrated middle-class in the Mainland and their demand for leisure and travel gives us great confidence in the longer term outlook for Macau. Additionally, the recent opening of new capacity in Macau and the soon to be launched Hong Kong-Zhuhai-Macau Bridge should further stimulate growth in visitations.
Last but not least, I would like to extend my sincere appreciation to all of our committed team members who deliver 'World Class, Asian Heart' service every day and contribute to the success of the Group."
Macau Market Overview
The positive momentum of 2017 has continued into 2018, supported by a solid economic performance in China and strong outbound tourism. Macau's gross gaming revenue for Q1 2018 was $74.3 billion, up 6% quarter-on-quarter and up 21% year-on-year. This is the 7th reported consecutive quarter of YoY growth.
During the period, visitor arrivals to Macau were 8.5 million, up 9% year-on-year, in which visitors from Mainland China grew at a faster rate of 13%. In particular, overnight visitors grew 10% year-on-year, with the average length of stay rising by 0.1 day to 2.2 days, demonstrating new hotel capacity has successfully grown both the day trip and overnight visitation. This trend is very positive as overnight visitors have a higher spend per customer than day trippers.
Group Financial Results
Q1 2018
In Q1 2018, GEG posted Group revenue of $18.5 billion, up 32% year-on-year and up 3% quarter-on-quarter. Adjusted EBITDA was $4.3 billion, up 36% year-on-year and up 4% quarter-on-quarter. Galaxy Macau™'s Adjusted EBITDA was $3.3 billion, up 26% year-on-year and down 3% quarter-on-quarter. StarWorld Macau's Adjusted EBITDA was $1.0 billion, up 55% year-on-year and up 34% quarter-on-quarter. Broadway Macau™'s Adjusted EBITDA was $13 million, versus $6 million in prior year and $7 million in Q4 2017. Latest twelve months Group Adjusted EBITDA was $15.3 billion, up 38% year-on-year.
GEG played unlucky in its gaming operation which decreased its Adjusted EBITDA by approximately $98 million in Q1 2018. Normalized Q1 Adjusted EBITDA was $4.4 billion, up 41% year-on-year and up 8% quarter-on-quarter.
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The Group's total gaming revenue on a management basis[1] in Q1 2018 was $17.2 billion, up 31% year-on-year and up 3% quarter-on-quarter. Total VIP gaming revenue was $9.9 billion, up 44% year-on-year and up 4% quarter-on-quarter. Total mass gaming revenue was $6.7 billion, up 17% year-on-year and up 1% quarter-on-quarter. Total electronic gaming revenue was $601 million, up 14% year-on-year and up 9% quarter-on-quarter.
Group Gaming in Q1 2018 | |||
HK$'m | Turnover / Table Drop / Slots Handle | Net Win | Win % / Hold % |
VIP Gaming | 288,792 | 9,868 | 3.4% |
Mass Gaming | 15,977 | 6,715 | 42.0% |
Electronic Gaming | 17,829 | 601 | 3.4% |
Group Gaming in Q1 2017 | |||
HK$'m | Turnover / Table Drop / Slots Handle | Net Win | Win % / Hold % |
VIP Gaming | 197,764 | 6,841 | 3.5% |
Mass Gaming | 14,086 | 5,755 | 40.9% |
Electronic Gaming | 15,030 | 525 | 3.5% |
Balance Sheet, Treasury Management and Special Dividend
The Group's balance sheet remains healthy, liquid and virtually unlevered. As of 31 March 2018, cash and liquid investments were $41.8 billion and net cash was $34.5 billion. Total debt decreased from $9.7 billion at 31 December 2017 to $7.3 billion at 31 March 2018. 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 plans.
The Group paid the previously announced special dividend of $0.41 per share on 27 April 2018, a 58% increase compared to April 2017.
Galaxy Macau™
Galaxy Macau™ is the primary profit contributor to the Group. In Q1 2018, Galaxy Macau™'s revenue was $13.0 billion, up 27% year-on-year and down 2% quarter-on-quarter. Adjusted EBITDA was $3.3 billion, up 26% year-on-year and down 3% quarter-on-quarter. Adjusted EBITDA margin under HKFRS was 25% (Q1 2017: 25%).
Galaxy Macau™ played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately $177 million in Q1 2018. Normalized Q1 Adjusted EBITDA was $3.4 billion, up 37% year-on-year and up 7% quarter-on-quarter.
VIP Gaming Performance
VIP rolling chip volume for Q1 2018 was $204.9 billion, up 56% year-on-year and up 7% quarter-on-quarter. This translated into revenue of $7.2 billion, up 40% year-on-year and down 2% quarter-on-quarter.
VIP Gaming | |||||
HK$'m | Q1 2017 | Q4 2017 | Q1 2018 | YoY% | QoQ% |
Turnover | 131,755 | 191,995 | 204,938 | 56% | 7% |
Net Win | 5,113 | 7,263 Werbung Mehr Nachrichten zur Galaxy Entertainment Aktie kostenlos abonnieren
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