Galaxy Entertainment Group filed its third-quarter earnings statement with the Hong Kong Stock Exchange yesterday and the numbers look good. The Macau casino operator reported an EBITDA (earnings before interest, taxation, depreciation and amortization) of $497.5 million, an increase of 10% year-on-year. While the quarter was an improvement over the same quarter last year, however, it was a 10% dip from the second quarter of 2018.
Third-quarter net revenue increased by 6% year-on-year to $1.65 billion. The company’s founder and chairman, Lui Che Woo, added, “Despite increased competition, with new property openings both in Macau and regionally, Galaxy Entertainment delivered solid [third-quarter] results.”
Total gross gaming revenue (GGR) for the company in the latest quarter also increase 6% year-on-year, coming in at $2.014 billion. Mass table GGR increased by 8% year-on-year to $841.7 million and aggregate VIP GGR rose 5% to $1.096 over the same period last year.
Galaxy Macau saw an increase of 7% – $1.186 million – in its net revenue year-on-year, but a decrease of 6% quarter-on-quarter. Adjusted EBITDA climbed 9% to $382.59 million. The VIP rolling chip volume for the casino jumped a significant 15% year-on-year to $24.17 billion, providing revenue of $816.1 million, an increase of 8.5% compared to the same 2017 period.
The Broadway Macau in Cotai, which doesn’t offer VIP action, saw its net revenue for the quarter come in at $18.49 million. This is an increase of 38% over the prior-year period. Adjusted EBITDA for the period was $1.14 million, compared to a loss of $510,161 last year.
As a result of the performance, the company will pay a special dividend per share of $0.06, fulfilling a previously-announced promise. The share is expected to be paid today.
Not much was mentioned in the filing about the progress on Phases 3 and 4 for Galaxy Macau. The company only stated, “We continue to move forward with our plans for Phases 3 and 4, and we look forward to formally announcing our development plans in the future. Our healthy balance sheet allows us to return capital to shareholders through special dividends and fund both our local development pipeline and explore international expansion opportunities. These include Phases 3 and 4, Hengqin and Japan.”