PRESS RELEASE
Galaxy Entertainment Group Financial Results Q3 2011
The Group reported strong growth in the third quarter of 2011, delivering its 12th consecutive
quarter of EBITDA growth.
Led by Galaxy MacauTM and StarWorld, the Group’s revenue reached $13 billion in Q3 2011,
representing an increase of 148% year-on-year and 67% over Q2 2011. Group EBITDA
reached $1.8 billion in Q3 2011, an increase of 191% and 62% over Q3 2010 and Q2 2011
respectively. As of September 2011, LTM Group EBITDA achieved $4.2 billion, an increase
of 116% over prior year.
All of GEG’s other businesses, including City Clubs and the Construction Materials Division,
continued to perform solidly and made valuable contributions to the Group’s strong results.
Dr. Che-woo Lui, Chairman of the Group said: “Galaxy MacauTM is experiencing a strong
ramp up of operations in both the VIP segment and the Mass Gaming segment. We are very
pleased with the results for our first full quarter of operation. StarWorld continues to deliver
exceptionally strong performance including record EBITDA and ROI of 80%. The Group is
delivering all-time record results and well positioned for future growth.”
Galaxy Macau™
Galaxy Macau™ generated revenue of $6,390 million and EBITDA of $973 million in Q3
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2011. Galaxy Macau™ reported an EBITDA margin for the period calculated under HK
GAAP of 15% and under US GAAP was 23%.
During the quarter, Galaxy MacauTM’s hotel occupancy improved to 91% even with a 50%
increase in the number of rooms available from 1,400 to 2,100. We are very pleased with the
success of the Galaxy MacauTM’s Grand Resort Deck which contributed to driving visitations
to the property. We continue to expand our food & beverage offerings and added Belon as one
of our signature restaurants in Q3. The Group expects the full complement of 2,200 hotel
rooms, suites and floating villas to open by the end of 2011. Also opening in Q4 will be more
entertainment offerings including Macau’s first mega 3D Cineplex. We believe these
additions will further enrich the property’s attractions to tourists.
StarWorld Hotel & Casino
StarWorld, the Group’s flagship property on the Macau peninsula, reported record quarterly
revenue of $6.4 billion, an increase of 37% year-on-year and 28% over Q2 2011. EBITDA
was $779 million for the period, an increase of 37% over Q3 2010 and 14% over Q2 2011.
The property has now reported 13th consecutive quarter of EBITDA growth. As of September
2011, LTM StarWorld EBITDA achieved $2.7 billion, an increase of 51% over a year ago.
StarWorld’s performance continued to be driven by the property’s strong reputation for
quality, excellent location in the gaming hub of the Macau peninsula, and its commitment to
Asian Heart service, which resulted in strong quarterly VIP rolling chip volume of $180
billion, an increase of 32% year-on-year.
StarWorld’s EBITDA margin for the quarter was 12%, same as Q3 2010. Under US GAAP,
the EBITDA margin would be 21%, same as Q3 2010.
The property continues to deliver an improving annual ROI of 80% as of Q3 2011 – calculated
based on the total EBITDA for the latest twelve months divided by the total investment,
including land cost.
StarWorld’s hotel room occupancy rate was at 99% in the third quarter of 2011. As a leading
luxury 5-Star hotel in Macau, StarWorld again received a number of industry awards in 2011,
including the Five-Star Diamond Award for the 5th consecutive year.
HIGHLIGHTS
GEG:
Group EBITDA of $1.8 billion in Q3, up 191% year-on-year, up 62% over Q2 2011
12th consecutive quarter of Group EBITDA growth
Latest twelve months (LTM) Group EBITDA through September 2011 more than
doubled to $4.2 billion over prior year
Galaxy Macau™: First Full Quarter of Operation
Strong first full quarter EBITDA of $973 million in Q3
Improved occupancy in Q3 to 91%, while increasing hotel room capacity by 50% to
2,100 rooms
Continue to expand our food & beverage offerings including adding Belon as one of
our signature restaurants in Q3
All 2,200 rooms and Macau’s first mega 3D Cineplex to open in late Q4 2011
StarWorld:
Record EBITDA of $779 million in Q3, up 37% year-on-year, up 14% over Q2 2011
13th consecutive quarter of EBITDA growth
Record VIP rolling chip volume of $180 billion, up 32% year-on-year
All time record Mass Gaming revenue of $433 million, up 40% year-on-year
Continuously improving ROI* of 80% in Q3
Balance Sheet
Remains liquid with total cash on hand of $7 billion as of September 30th, 2011
* ROI calculated based on the total EBITDA for the latest twelve months (LTM) divided by the total
investment, including land cost.
