With Q3 of the financial year for most casino operators having concluded on September 30, 2018, Galaxy Entertainment Group managed to post strong financial results as well.
Galaxy Entertainment Group Cites Strong Growth
On Thursday, October 25, Hong Kong Stock Exchange-listed company Galaxy Entertainment Group posted its financial performance results from the third quarter (Q3) of 2018. The company seemed to have done pretty good by itself.
The results revealed an EBITDA, standing for earnings before interest, taxation, depreciation, and amortization, at $479.5 million, which was a marked 10% increase over the same period in 2017.
During third quarter 2018, Galaxy Entertainment played unlucky which decreased adjusted EBITDA by approximately HKD332 million.
The quarter also proved to be stronger than what was achieved back in 2017 year-over-year, but still the Q3 results proved a bit less rewarding than the posted performance results in Q2.
Speaking of the exact achievement over the period, Q3 saw a hike in the net revenue, which went up 6% and ended at $1.65 billion in the three months concluding on September 30.
Galaxy Entertainment commended itself for the achieved results, but also cautioned about those drawbacks that had stopped it from performing better. With this proviso in mind, the financial reports revealed more important underlying factors in the overall offer.
Total gross gaming revenue (GGR) increased as well, adding 6% on top of last year’s results and concluding at $2 billion. As to table GGR, the numbers went up there as well noting another strong increase for a total of $842 million or 8%.
Galaxy and Macau Soar Past the Mark
Another strong indicator for the company was the increase in operating results in Macau, despite natural disasters, looming legislation and geopolitical tensions. Macau occasioned 7% growth in the company’s results, though that was admittedly less than the results in Q2.
Another interesting development was that VIP chips issued in the period, with the segment expanding by as much as 15%, which in turn amounted to $24.15 billion. But even properties without VIP, such as Cotai, managed to do quite well by themselves, notching up $18.49 million (again for the Cotai property).
This alone constitutes a 38% increase in the overall performance of the segment which is important to note down.
Despite increased competition, with new property openings both in Macau and regionally, Galaxy Entertainment delivered solid results. – Lui Che Woo, Galaxy Entertainment founder
Founder Lui Che Woo has been quite enthusiastic about the growth of Galaxy Entertainment though he reflected the stance of his company whereby the recent growth was achieved in difficult conditions.
There has been a lot of pressure on Macau in general, with new casinos opening up and other places in Asia becoming just as attractive or potentially even threat to established business models. As reported, Japan is now moving towards launching its first casino resort, which will likely make it one of the most desired gaming areas in Asia.
Meanwhile, there is always the forecast that Macau is very likely to outpace Qatar as the world’s richest region When it comes to Galaxy Entertainment, challenges lie ahead, but Q3 results are looking good.