Hong Kong-listed casino operator Galaxy Entertainment Group (GEG) registered a 56 percent net profit increase in the first half of 2018, driven by record mass market and strong VIP segments.
GEG announced to the Hong Kong Stock Exchange that its net profit attributable to the company’s shareholders grew to HKD7.2 billion (US$917.2 million) for the six months that ended June 30, 2018.
The group’s net revenue jumped 25 percent to HKD28.1 billion ($3.56 billion) in H1 2018 while adjusted EBITDA climbed 34 percent to HKD8.6 billion ($1.09 billion) despite “bad luck in its gaming operations.”
GEG’s total gaming revenue—excluding that generated by the City Clubs that use Galaxy Entertainment’s gaming license but were managed by third-party investors—climbed 30 percent year-on-year to HKD34.3 billion ($4.37 billion).
GEG’s VIP segment GGR was up 41 percent to HK$19.6 billion ($2.5 billion) while mass market GGR rose 18 percent to HKD 13.5 billion ($1.72 billion).
Non-gaming revenue climbed 11 percent to HKD1.6 billion ($203.84 million), with the group’s combined five hotels registering “strong occupancy of virtually 100 percent.”
As a result of the casino operator’s exceptional profit, GEG announced that it will issue a special dividend of HKD0.50 ($0.064) per share.
Galaxy Macau remained the casino operator’s “primary contributor to the group revenue and earnings.” The property reported total net revenue of HKD19.8 billion ($2.52 billlion) in H1 2018, up 25 percent year-on-year, while adjusted EBITDA rose 28 percent to ($8.2 billion).
The flagship property’s VIP GGR hit HKD14.5 billion ($1.85 billion), up 45 percent, while its rolling chip volume rose 56 percent to HKD413.4 billion ($52.67 billion). Galaxy Macau’s mass GGR was HKD9.1 billion ($1.16 billion), up 17 percent.
Broadway Macau’s net revenue inched up to HKD273 million ($34.78 million) despite a 5 percent drop in its mass GGR to HKD132 million ($16.82 million). Non-gaming revenue grew 11 percent to HKD119 million (US$15.16 million).
Finally, GEG reported that StarWorld Macau’s net revenue for H1 2018 stood at HKD6.3 billion ($802 million), up 28 percent year-on-year. Its adjusted EBITDA climbed 41 percent to HKD2 billion ($254.8 million).
StarWorld’s VIP rolling chip volume surged 29 percent year-on-year to HKD162 billion ($20.64 billion), while mass GGR rose 26 percent to HKD3.4 billion ($433.16 million).
“Our balance sheet continued to be exceptionally strong and liquid with total cash and liquid investments of HK$42.9 billion and net cash of HK$34.3 billion. Our exceptionally strong balance sheet allows us to return capital to shareholders through dividends and to fund our development pipeline and our international expansion ambitions,” GEG Chairman Lui Che Woo said in a statement.