PR Newswire
HONG KONG, Aug. 8 2018
Delivers Record Quarterly EBITDA
Q2 2018 Group Adjusted EBITDA of $4.3 Billion, Up 32% YoY
10th Consecutive Quarter of YoY EBITDA Growth
Driven by Record Quarterly Mass Performance
Subsequently Announced Another Special Dividend
$0.50 Per Share Payable on or about 26 October 2018
HONG KONG, Aug. 8 2018 /PRNewswire/ -- Galaxy Entertainment Group ("GEG", "Company" or the "Group") (HKEx stock code: 27) today reported results for the three months and six months periods ended 30 June 2018. (All amounts are expressed in Hong Kong dollars unless otherwise stated)
Q2 & INTERIM 2018 RESULTS HIGHLIGHTS
GEG: Delivered Record Performance, Driven by Record Mass, Strong VIP and Operational Execution
Galaxy Macau™: 10th Consecutive Quarter of YoY EBITDA Growth, despite Playing Unlucky
StarWorld Macau: 8th Consecutive Quarter of YoY EBITDA Growth Driven by Near Record Mass
Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs
Balance Sheet: Exceptionally Strong Balance Sheet
Development Update: Continuing to Pursue Development Opportunities
*Net Revenue is calculated in accordance with the new accounting standard and the comparison percentage is over the restated Net Revenue in Q2 & 1H 2017 and Q1 2018. |
Dr. Lui Che Woo, Chairman of GEG said:
"Today I am pleased to report the second quarter and half year results of the Group in 2018. During the period Macau continued to perform and the Group focused on operational execution. For first half of 2018, Group Net Revenue increased 25% year-on-year to $28.1 billion and Adjusted EBITDA increased 34% year-on-year to $8.6 billion. In Q2 2018, the Group delivered record Adjusted EBITDA of $4.3 billion, notwithstanding $131 million of bad luck. This is despite the ramp up of new and existing properties in a competitive market. Also of note is that Q2 Gross Gaming Revenue ("GGR") is historically softer than Q1 and that the World Cup impacted GGR in the latter part of June and into July.
We continued to drive every segment of the business and yield our resorts which translated into record EBITDA. We are very pleased to report that for both second quarter and the first half, our resort hotels reported virtually 100% occupancy.
Our balance sheet continued to be exceptionally strong and liquid with total cash and liquid investments of $42.9 billion and net cash of $34.3 billion. Our exceptionally strong balance sheet allows us to return capital to shareholders through dividends and to fund our development pipeline and our international expansion ambitions. On 27 April 2018 we paid a special dividend of $0.41 per share and today we announced another special dividend of $0.50 per share payable on or about 26 October 2018. These dividends demonstrate our confidence in the longer term outlook for Macau and for the Company.
Also, in March GEG agreed to purchase a passive minority investment of 4.9% in Wynn Resorts at a cost of USD $927.5 million (approximately HK$7.28 billion). We subsequently closed the transaction in April 2018.
On the development front, GEG continued to move forward with its Cotai Phases 3 & 4, which will include approximately 4,500 hotel rooms, including family and premium high end rooms, significant MICE space, a 16,000-seat multi-purpose arena, food and beverage, retail and casinos, among others. Further, we are advancing the conceptual plans for our development in Hengqin for a low density integrated resort that will complement our high energy resorts in Macau. The Group has a clearly defined growth development pipeline.
I am very pleased with the recent passing of the Integrated Resort ("IR") Bill in Japan. We view Japan as a great long term growth opportunity that will complement our Macau operations and our other international expansion ambitions. GEG, together with Monte-Carlo SBM from the Principality of Monaco and our Japanese partners, look forward to bringing our brand of World Class IRs to the country.
We remain confident in the outlook for Macau and GEG specifically over the longer term due to the significant market demand for leisure, tourism and travel. However, we do acknowledge that in the shorter term the global trade tensions, currency volatility and the overall slowing economy may impact consumer confidence in the second half of 2018. We look forward to the opening of additional infrastructure projects such as Hong Kong-Zhuhai-Macau Bridge and the extended train line that will support the future growth of Macau and the integration of the Greater Bay Area.
Finally, I would like to thank all our team members who deliver 'World Class, Asian Heart' service every day and contribute to the success of the Group."
Market Overview
Based on DICJ reporting, Macau's GGR for the first half of 2018 was up 19% year-on-year to $145.8 billion. Q2 2018 GGR was up 17% year-on-year and down 4% quarter-on-quarter to $71.6 billion. The Q2 GGR number includes the short term negative impact of the World Cup on gaming revenue and historically Q2 GGR is seasonally softer than Q1.
In the first half of 2018, visitor arrivals to Macau were 16.84 million, up 8% year-on-year, in which overnight visitors also grew at 8% year-on-year. The average length of stay for overnight visitors increased 0.1 day year-on-year to 2.2 days, demonstrating new hotel capacity has successfully grown both the day trip and overnight visitation.
Summary of Accounting Changes and the Impact
In accordance with the Hong Kong Institute of Certified Public Accountants (HKICPA), GEG adopted a new accounting standard in reporting revenue from gaming operation beginning from 1 January 2018. GEG's first mandatory reporting period is the six months period ended 30 June 2018. The main changes due to this reporting standard are that commission and incentives are to be deducted from the net wins from gaming operation to arrive at the net gaming revenue. In addition, GEG now also reports all complimentary provided to gaming customers at market rate. The comparative figures of revenue in 2017 have been restated to conform with the current period's presentation.
In summary the impact will be lower reported gaming revenue, an increased Adjusted EBITDA margin, and an increase in non-gaming revenue such as hotels and F&B. There will be no change in the Adjusted EBITDA or NPAS.
New Accounting Standard | ||||||
| 2017 (Restated) | 2018 | ||||
(HK$'m) | Q1 | Q2 | 1H | Q1 | Q2 | 1H |
Total Net Revenue | 11,128 | 11,408 | 22,536 | 14,133 | 13,925 | 28,058 |
Net Revenue, Gaming Operations | 9,328 | 9,373 | 18,701 | 11,921 | 11,898 | 23,819 |
NPAS | | | 4,631 | | | 7,206 |
Adjusted EBITDA | 3,180 | 3,286 | 6,466 | 4,319 | 4,326 | 8,645 |
Adjusted EBITDA Margin | 28.6% | 28.8% | 28.7% | 30.6% | 31.1% | 30.8% |
Previous Accounting Standard | ||||||
| 2017 | | 2018 | | ||
(HK$'m) | Q1 | Q2 | 1H | Q1 | Q2 | 1H |
Total Revenue | 14,097 | 14,447 | 28,544 | 18,549 | 18,288 | 36,837 |
Gross Revenue, Gaming Operations | 12,672 | 12,777 | 25,449 | 16,720 | 16,648 | 33,368 |
NPAS | | | 4,631 | | | 7,206 |
Adjusted EBITDA | 3,180 | 3,286 Werbung Mehr Nachrichten zur Galaxy Entertainment Aktie kostenlos abonnieren
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