Macau casino operator Galaxy Entertainment Group Ltd posted a 29 percent year-on-year increase in first half net profit to HKD6 billion (US$774 million), the company said on Tuesday. Revenue climbed 25 percent year-on-year to HKD38.4 billion and adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 26 percent to HKD7.3 billion, the operator said in a filing.
Galaxy Entertainment’s rise in profit comes as growth in the Macau gaming industry shows first signs of decelerating. Casino gross gaming revenue fell for a second consecutive month in July.
The company said total gaming revenue grew by 24 percent year-on-year to HKD38.2 billion in the first half of 2014, “driven by healthy growth in both mass and VIP”.
Total mass revenue increased 28 percent from a year earlier to HKD9.9 billion while total VIP revenue grew by 24 percent to HKD27.5 billion, it added.
Galaxy Macau (pictured), the company’s flagship Cotai property, remains the key growth driver with first half revenue increasing by 38 percent to HKD25 billion against the same period last year.
The company announced a special dividend of HKD0.45 per share to be paid on October 31.
“During the half year we made excellent progress in realising our primary strategic objectives across our flagship properties including enhancing our existing operations as the market evolves and building foundations for the group’s long term sustainable growth,” Lui Che Woo, chairman of Galaxy Entertainment, said in the statement.
The casino operator said the HKD19.6-billion Phase 2 of Galaxy Macau is “on schedule to complete by mid-2015”. Later this year the company expects to start site investigation works for Phases 3 and 4 of the Cotai resort, with an estimated budget of up to HKD60 billion.
The Grand Waldo complex next door to Galaxy Macau will re-launch “in early 2015” following an extensive refit, the company confirmed on Tuesday, promising to unveil the plans for the property later this year.
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"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China