Galaxy Entertainment Group posted record Q1 adjusted EBITDA, despite bad luck during the period, and said it’s actively pursuing its expansion plans in the Philippines and Japan.
For Q1 Galaxy group revenue rose 32 percent to HK$18.5 billion ($2.35 billion). Adjusted EBITDA was HK$4.3 billion, up 36 percent. Normalized for the luck factor, adjusted EBITDA was up 41 percent.
Gross gaming revenue gained 31 percent to $17.2 billion, mainly driven by the VIP sector, which posted a 44 percent gain over the prior year. Mass gaming revenue was up 17 percent, while slot revenue rose 14 percent.
The company has cash and liquid investments of HK$41.8 billion and net cash of HK$34.5 billion, which it said gives it one of the strongest balance sheets in the gaming industry.
“Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders through dividends and to fund our development pipeline and international expansion plans,” it said in a Hong Kong Stock Exchange filing.
Earlier this year Galaxy announced plans for a casino on the Philippine island of Boracay and bought an almost 5 percent stake in operator Wynn Resorts. It is also pushing for a license in Japan.
“We continue to actively pursue Japan and subsequently announced that we enhanced and will continue to expand our team in Japan with the appointment of Mr. Ted Chan as Chief Operating Officer - Japan Development.”
In its home market of Macau, the company is embarking on its next growth program with the construction of its Cotai Phases 3 & 4, which will include 4,500 hotel rooms, including family and premium high-end rooms, significant MICE space, a 16,000-seat arena, F&B, retail and casinos, among others.
Doubt has continued to swirl about the fate of its project on Boracay after Philippine President Rodrigo Duterte ordered the closure of the island to clean up the environment. Galaxy says it is continuing to work with its Philippine partner, Leisure and Resorts World Corp to clarify the situation.
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