Profitable year for Galaxy Entertainment Group Limited

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Asian casino operator Galaxy Entertainment Group Limited has released its financial results for 2017 showing a 61% increase year-on-year in adjusted net profit to $1.4 billion alongside an 18% rise in overall revenues to $7.9 billion.

Hong Kong-listed Galaxy Entertainment Group Limited explained that its full-year adjusted earnings before interest, tax, depreciation and amortization improved by 37% year-on-year to hit $1.8 billion while its total gaming revenues of $7.4 billion represented a swell of some 17%.

Galaxy Entertainment Group Limited operates the Galaxy Macau, StarWorld Macau and Broadway Casino in Macau and stated that its annual aggregated revenues from mass-market table games reached nearly $3.1 billion, which was a boost of 15% year-on-year, while VIP takings rose by 19% to achieve just over $4 billion.

Regarding individual properties, Galaxy Entertainment Group Limited declared that its Galaxy Macau property recorded an amplification of 17% year-on-year in annual revenues to almost $5.7 billion while the venue’s associated adjusted earnings before interest, tax, depreciation and amortization of $1.4 billion signified a 31% strengthening.

For StarWorld Macau, the operator proclaimed that twelve-month takings increased by 20% year-on-year to $1.8 billion with annual adjusted earnings before interest, tax, depreciation and amortization swelling by 38% to $383.1 million.

However, the situation for Broadway Casino was far less rosy as Galaxy Entertainment Group Limited reported that this venue had recorded an almost 24% drop year-on-year in annual revenues to $65.6 million alongside an associated 66% decrease in adjusted twelve-month earnings before interest, tax, depreciation and amortization to $1.2 million.

Galaxy Entertainment Group Limited revealed that all of this left it with net assets and liquid investments of approximately $5.3 billion as of the end of December, of which some $4 billion was in cash, while its overall debt stood at a little over $1.2 billion.

“I am confident in the medium to longer-term outlook for Macau and this confidence is based upon the continued solid economic performance of mainland China and the significantly underpenetrated tourist markets in China and Asia,” read a Wednesday statement (pdf) from Lui Che Woo, Chairman for Galaxy Entertainment Group Limited. “Additionally, the opening of new properties in Macau in 2018 and the launch of the Hong Kong-Zhuhai-Macau Bridge should stimulate growth in the shorter-term period.”