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| Thursday, 10 May 2012, 09:20 HKT | |
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Source: Galaxy Entertainment Group Limited | |
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Record Group EBITDA, Tripled Year-on-Year to $2.2 billion
14th Consecutive Quarter of EBITDA Growth
Galaxy Macau(TM) Generated $1.3 billion of EBITDA, up 6% on Q4 2011
StarWorld Delivered 15th Consecutive Quarter of EBITDA Growth with $852 million
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Hong Kong, May 10, 2012 - (ACN Newswire) - Galaxy Entertainment Group Limited ("GEG" or "the Group") (HKEx stock code: 27) today reported selected unaudited 2012 first quarter financial data, for the three months ending 31 March 2012.
First Quarter 2012 Highlights
GEG
-- All-time record EBITDA of $2.2 billion, up 202% year-on-year
-- 14th consecutive quarter of Group EBITDA growth
-- Latest twelve months Group EBITDA to March 31, 2012 increased by 185% to $7.2 billion
-- Reported strong Mass revenues at Galaxy Macau(TM) and StarWorld which increased quarter-on-quarter by 16% and 13%, respectively
Galaxy Macau(TM)
-- EBITDA of $1.3 billion grew 6% in Q1 2012 for the third full quarter of operation
-- EBITDA margin improved by 12% quarter-on-quarter from 16% to 18%
-- Strong hotel occupancy of 89% for Q1 2012
-- Enhanced gaming and entertainment offering with the opening of two Sky casinos, The Pavilion High Limit Slots, an additional VIP Room and China Rouge
-- Q1 2012 annualised ROI of 32%
StarWorld
-- 15th consecutive quarter of EBITDA growth at $852 million, up 28% year-on-year
-- ROI improved to 91%
-- Strong hotel occupancy of 98% for Q1 2012
Balance Sheet
-- Strong cash on hand of $9.5 billion at 31 March 2012, including restricted cash of $1.9 billion
Subsequent Event: Announcement of Galaxy Macau(TM) Phase 2
-- Announced the proposed $16 billion Galaxy Macau Phase 2 on April 26, 2012
-- Target completion is in mid 2015
-- GEG does not intend to issue equity
Dr. Che-woo Lui, Chairman of GEG said:
"This is another set of strong results, our 14th consecutive quarter of EBITDA growth. Both our flagship properties delivered gains in profitability. As Galaxy Macau(TM) approaches its one year anniversary; it continues to exceed our expectations, as well as those of our guests."
"Today's performance announcement also underscores the exciting potential of our recently announced Phase 2 development of Galaxy Macau. We are constantly striving to achieve even greater success in the pursuit of our goal, to become Asia's Leading Gaming and Entertainment Corporation."
Group Financial Results
The Group performed well in the first quarter of 2012, delivering its 14th consecutive quarter of EBITDA growth with a record of $2.2 billion. As of 31 March 2012, LTM (latest twelve months) Group EBITDA was $7.2 billion. Group revenue reached $13.2 billion in the quarter, an increase of 130% year-on-year.
City Clubs and the Construction Materials Division performed solidly.
Galaxy Macau(TM)
Galaxy Macau(TM), GEG's integrated resort in Cotai, generated revenue of $7.2 billion and EBITDA of $1.3 billion in Q1 2012 in its third full quarter of operation. Mass Market revenue increased by 16% quarter-on-quarter. Operational efficiencies combined with strong performance in Mass Market resulted in EBITDA margin improving for the period to 18% calculated under HK GAAP, and 26% under US GAAP. On an annualised basis, ROI stood at 32%.
The property's success is based on its wide range of world class Asian themed entertainment, accommodation and dining options. During the quarter, its 'World Class, Asian Heart' product and service offering was further enhanced with the opening of two new luxurious Sky casinos, The Pavilion High Limit Slots, the spectacular China Rouge private members club and the opening of an additional VIP Room. Galaxy Macau(TM)'s strong hotel occupancy for the quarter was 89%.
StarWorld Hotel & Casino
StarWorld, the Group's flagship property on the Macau peninsula, reported its 15th consecutive quarter of EBITDA growth, up 28% year-on-year to a record of $852 million in Q1 2012.
StarWorld's EBITDA margin for the quarter was 15% under HK GAAP, compared to 13% in Q1 2011 and 14% in Q4 2011. Under US GAAP, EBITDA margin for the quarter was 26%, compared to 23% in Q1 2011 and 23% in Q4 2011.
Quarterly revenue increased by 11% year-on-year to $5.5 billion, but fell 10% quarter-on-quarter due to a below expected VIP win rate of 2.7% in Q1 2012 (expected win rate: 2.8%) versus Q4 2011 of 3.1% despite healthy VIP volume.
Mass gaming revenue grew 56% year-on-year to $564 million on record volume of $2.4 billion. StarWorld's strong hotel occupancy for the quarter was 98%.
On an LTM basis, StarWorld generated EBITDA of $3.1 billion which translated to an ROI of 91%.
City Clubs and Construction Materials
City Clubs reported EBITDA of $43 million in Q1 2012 versus $57 million in Q1 2011. Year-on-year EBITDA at the Construction Materials Division grew 22% to $83 million.
Liquidity
As of 31 March 2012, the Group was well capitalised and liquid with $9.5 billion of cash, including restricted cash of $1.9 billion.
Subsequent Event: Announcement of Galaxy Macau(TM) Phase 2
The recently announced accelerated launch of Phase 2 of Galaxy Macau(TM) will virtually double the size of the resort to 1.0 million square meters and comprise:
-- Two new luxury hotels, the first ever all suite The Ritz-Carlton and the world's largest JW Marriott, bringing the total offer to five luxury hotels with a grand total of approximately 3,600 rooms
-- Greatly expanded retail space to over 100,000 square metres and up to 200 high-end retail outlets
-- Over 45 new international food & beverage outlets, taking the total to over 100
-- Expanded Meeting, Event and Banquet space for seating capacity of over 3,000 guests
Galaxy Macau(TM) Phase 2's target completion is in mid 2015.
About Galaxy Entertainment Group Limited
Galaxy Entertainment Group Limited ("GEG") is one of Asia's leading gaming and entertainment corporations. GEG develops and operates hotels, gaming and integrated resort facilities in Macau. Through its subsidiary Galaxy Casino, S.A., GEG holds a gaming concession in Macau, the only legal gaming location in China and the fastest growing gaming market in the world.
The two flagship properties of GEG include Galaxy Macau(TM), a world class integrated destination resort opened in May 2011 at Cotai, and StarWorld Hotel and Casino, an award-winning property opened in 2006 on the Macau peninsula.
In April 2012, GEG announced the development of Galaxy Macau(TM) Phase 2 that will nearly double the size of the existing resort to one million square metres. Upon its completion by mid-2015, Galaxy Macau(TM) Phase 2 will bring to Macau some of the most exciting and game-changing entertainment, leisure, retail and MICE facilities. In December 2012, GEG outlined its concept plans for Phases 3 & 4 of its Cotai landbank. We expect to commence construction by the end of 2013 / early 2014 with a targeted phased opening between 2016 and 2018. Predominantly targeting premium mass guests, it will provide an unparalleled array of resort amenities and GEG expects it to set a new benchmark for the industry and support the government in developing Macau into a world centre of tourism and leisure.
Additionally, GEG operates City Clubs Casinos in Macau and a Construction Materials Division.
For more information, please visit www.galaxyentertainment.com.
Contact:
Galaxy Entertainment Group
Mr. Peter J. Caveny
Vice President, Investor Relations
Tel: +852 3150 1111
Email: ir@galaxyentertainment.com
Ms. Yoko Ku
Assistant Manager, Investor Relations
Tel: +852 3150 1111
Email: ir@galaxyentertainment.com
May 10, 2012
Source: Galaxy Entertainment Group Limited
Topic: Press release summary
Sectors: Financial General, Business General
http://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2013 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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