Macau casino operator Galaxy Entertainment beat analysts’ predictions as it registered an encouraging second quarter of 2016, suggesting the ‘stabilisation’ of Macau’s gaming sector after two years of decline.
[dropcap]F[/dropcap]or the six months to 30 June, Galaxy’s net profit increased by 26 percent year-on-year to HK$2.6bn (€300m), and overall group revenue and adjusted EBITDA moved up one percent to HK$25.5bn (€2.9bn), while adjusted EBITDA increased by 13 percent to HK$4.7bn (€537m).
Galaxy, which holds a 23 percent market share of Macau’s casino industry, said revenue at its flagship resort Galaxy Macau grew eight percent to HK$18.5bn (€2.1bn), despite VIP spend down 16 percent to HK$245.8bn (€28bn) across all divisions.
StarWorld Macau revenue fell by 22 percent to HK$5.6bn (€639.5m), while Galaxy’s new Broadway Macau saw takings of HK$350m (€40m). Adjusted EBITDA for Q2 was HK$2.3bn (€262.6m) compared with the median estimate of HK$2.25bn (€257m) by five analysts surveyed by Bloomberg.
Galaxy has announced solid financial results for the first half of 2016 as the Macau market continued to show gradual signs of stabilisation.
Chairman Lui Che Woo said: “Galaxy has announced solid financial results for the first half of 2016 as the Macau market continued to show gradual signs of stabilisation.
“Galaxy Macau, with its large mass segment and non-gaming entertainment amenities, is the main contributor to our results.
“This coupled with StarWorld Macau’s ongoing steady transition to a Mass focused operation illustrates the broadening of GEG’s footprint and the expansion of its non-gaming offering.”