Hong Kong-listed casino operator Galaxy Entertainment Group (GEG) registered a 56 percent net profit increase in the first half of 2018, driven by record mass market and strong VIP segments.
GEG announced before the Hong Kong Stock Exchange that its net profit attributable to the company’s shareholders grew to HKD7.2 billion (US$917.2 million) for the six months that ended in June 2018.
The group’s net revenue also jumped 25 percent to HKD28.1 billion (US$3.56 billion) in H1 2018 while its adjusted EBITDA climbed 34 percent year-on-year to HKD8.6 billion (US$1.09 billion) despite “bad luck in its gaming operations.”
Financial data shows that GEG’s VIP and mass market segments boosted the profits of the casino operator. GEG’s total gaming revenue—excluding those generated by the City Clubs that use Galaxy Entertainment’s gaming license but were managed by third-party investors—climbed 30 percent year-on-year to HKD34.3 billion (US$4.37 billion).
GEG’s VIP segment registered a total GGR of HK$19.6 billion (US$2.5 billion), up 41 percent in the first half of 2018 while the mass market GGR was up 18 percent to HKD 13.5 billion (US$1.72 billion) during the first six months of the year.
GEG also reported its non-gaming revenues climbed 11 percent to HKD1.6 billion (US$203.84 million), with the group’s combined five hotels registering “strong occupancy of virtually 100 percent.”
As a result of the casino operator’s exceptional profit, GEG announced that it will issue a special dividend of HKD0.50 (US$0.064) per share.
Breaking down GEG’s financial report, Galaxy Macau remained to be the casino operator’s “primary contributor to the group revenue and earnings.” The casino property chalked a total net revenue of HKD19.8 billion (US$2.52 billlion) in H1 2018, up 25 percent year-on-year. Its adjusted EBITDA also rose 28 percent to (US$8.2 billion) in January to June 2018 period
GEG’s flagship property’s VIP GGR was at HKD14.5 billion (US$1.85 billion) in H1 2018, up 45 percent year-on-year while its rolling chip volume for the first six months of the year also rose 56 percent to HKD413.4 billion (US$52.67 billion). Galaxy Macau’s mass GGR for H1 2018 was HKD9.1 billion ($1.16 billion), up 17 percent year-on-year.
Meanwhile, Broadway Macau’s net revenue inched up to HKD273 million (US$34.78 million) in the first six months of 2018, despite a 5 percent drop in its mass GGR. Data showed that Broadway Macau registered a mass GGR of HKD132 million (US$16.82 million) in the first half of 2018.
Non-gaming revenue of Broadway Macau also grew 11 percent for the first six months of the year to HKD119 million (US$15.16 million), according to GEG.
Finally, GEG reported that StarWorld Macau’s net revenue for H1 2018 stood at HKD6.3 billion (US$802 million), up 28 percent year-on-year. Its adjusted EBITDA for the first six months of 2018 climbed 41 percent to HKD2 billion ($254.8 million).
VIP rolling chip volume in StarWorld Macau surged 29 percent year-on-year to HKD162 billion ($20.64 billion) in H1 2018, while mass GGR rose 26 percent to HKD3.4 billion ($433.16 million).
“Our balance sheet continued to be exceptionally strong and liquid with total cash and liquid investments of HK$42.9 billion and net cash of HK$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,” GEG Chairman Lui Che Woo said in a statement.
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