Galaxy Entertainment Q1 EBITDA jumps 38 percent

    Galaxy Entertainment said its Q1 adjusted EBITDA rose 38 percent, driven mainly by Galaxy Macau. EBITDA was $3.8 billion, while revenue jumped 33 percent year-on-year to $20.2 billion, largely in line with expectations. Galaxy Macau saw a 44 percent year-on-year gain in adjusted EBITDA, while StarWorld Macau rose 26 percent year on year. Total gaming revenue grew 33 percent from the prior year to $20.2 billion as total mass table revenue increased 37 percent to $5.1 billion and total VIP revenue grew 32 percent year-on-year to $14.6 billion. “Notwithstanding the recent press reports and associated share price volatility, we believe that Macau’s prospects in the short, medium and long-term continue to be very bright,” the company said. “As Macau continues to evolve and cater to the mass market, it attracts a broader customer group. Understanding the changing tastes and preferences of these customers is extremely important in such a dynamic market.” Galaxy said building work on Phase 2 of Galaxy Macau, which will almost double the existing footprint, is due to complete on budget and on schedule by mid-2015. Cotai Phases 3 & 4 design plans are in the final stages and it expects to commence construction as early as late 2014 with an investment of $50-$60 billion. The company also said it is continuing with its plans for a 2.7 square kilometre parcel on Hengqin Island and plans to invest RMB10 billion on a resort there. Commenting on the results, UBS said in a note that Galaxy “impressively managed to outpace industry growth sequentially across both VIP and mass segments in the quarter.”