Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q4 2018 Earnings Presentation
31 slides from Galaxy Entertainment's earnings presentation, Feb 28, 2019
Slide 1: Q4 and Annual Results for the period end December 31, 2018
Q4 and Annual Results for the period end December 31, 2018 28 February, 2019
Slide 2: Executive Summary: Group Performance and Property Enhancement Program
Executive Summary GEG: Delivered Solid Performance, Proceeding On A $1.5 billion Property Enhancement Program For Galaxy Macau™ And StarWorld Macau Q4 2018 • Q4 Group Net Revenue* of $14.2 billion, up 2% YoY and up 9% QoQ • Q4 Group Adjusted EBITDA of $4.3 billion, up 4% YoY, up 12% QoQ • Played luc
Slide 3: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Continued Solid Performance Driven By Mass And Non-gaming Q4 2018 • Q4 Net Revenue* of $10.4 billion, up 2% YoY and up 11% QoQ • Q4 Adjusted EBITDA of $3.4 billion, up 2% YoY and up 16% QoQ • Played lucky in Q4 which increased Adjusted EBITDA by approximately $191 mi
Slide 4: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Continued Solid Performance Driven By Mass Q4 2018 • Q4 Net Revenue* of $3.0 billion, up 12% YoY and up 2% QoQ • Q4 Adjusted EBITDA of $893 million, up 19% YoY and down 4% QoQ • Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $115 million, nor
Slide 5: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q4 2018 • Q4 Net Revenue* of $144 million, down 1% YoY and down 1% QoQ • Q4 Adjusted EBITDA of $8 million versus $7 million in Q4 2017 and $9 million in Q3 2018 • Played lucky in Q4 which increased A
Slide 6: Executive Summary: Balance Sheet and Special Dividends
Executive Summary Balance Sheet: Healthy Balance Sheet • Cash and liquid investments was $45.8 billion and net cash was $37 billion as at 31 December 2018 • Debt of $8.8 billion as of 31 December 2018 primary reflects ongoing treasury yield management initiative GEG Special Dividends • Paid two spec
Slide 7: Executive Summary: Development Update
Executive Summary Development Update: Continuing to Pursue Development Opportunities • Proceeding on a $1.5 billion upgrade and enhancement of Galaxy Macau™ and StarWorld Macau • Cotai Phases 3 & 4 – Continue to move forward with Phases 3 & 4, with a strong focus on non-gaming, primarily targeting M
Slide 8: 2018 Annual Results
2018 Annual Results February 2019 8
Slide 9: GEG Revenue Summary FY2018
GEG Revenue Summary FY2018 Fiscal 2018 Net Revenue increased 14% YoY to $55.2 billion GEG Net Revenue (HK$’m) $55,211 $48,640 Net Revenue YoY GEG Total +14% Galaxy Macau™ +14% $39,491 $34,685 StarWorld Macau +18% Broadway Macau™ +9% $12,159 $10,267 +4% City Clubs $514 $562 $107 $111 (6)% $3,067 $2,8
Slide 10: GEG Adjusted EBITDA FY2018
GEG Adjusted EBITDA FY2018 Group Adjusted EBITDA grew 19% YoY to $16.9 billion GEG Adjusted EBITDA (HK$’m) $16,857 $14,147 Adjusted EBITDA YoY GEG Total +19% $12,871 Galaxy Macau™ +16% $11,130 StarWorld Macau +28% Broadway Macau™ +220% $3,810 $2,966 +4% $32 City Clubs $10 $107 $744 $111 $940 $(810)
Slide 11: GEG FY2018 NPAS
GEG FY2018 NPAS 2018 NPAS grew 29% YoY to $13.5 billion and increased 28% on an adjusted basis to $14.1 billion after non-recurring charges (in HK$'m) FY2017 FY2018 Net Revenue* $ 48,640 $ 55,211 Adjusted EBITDA $ 14,147 $ 16,857 Net Profit attributable to shareholders (NPAS) $ 10,504 $ 13,507 Non-r
Slide 12: GEG Special Dividends
GEG Special Dividends Today, GEG announced another special dividend of $0.45 per share to be paid on or about 26 April 2019 • The Group paid two special dividends of $0.41 per share and $0.50 per share, on 27 April 2018 and 26 October 2018, respectively • Today, the Board is pleased to announce anot
Slide 13: Cash and Debt Update
Cash and Debt Update GEG continues to remain well capitalized with Cash and Liquid Investments of $45.8 billion and net cash position of $37 billion as at 31 December 2018 Debt of $8.8 billion as at 31 December 2018 primary reflects ongoing treasury yield management initiative with virtually no core
Slide 14: Q4 2018 Results
Q4 2018 Results February 2019 14
Slide 15: GEG Revenue Q4 2018
GEG Revenue Q4 2018 Group Net Revenue in Q4 2018 grew 2% YoY and 9% QoQ to $14.2 billion GEG Net Revenue (HK$’m) YoY QoQ $13,870 $14,158 $12,995 GEG Total +2% +9% Galaxy Macau™ +2% +11% $10,115 $10,361 $9,337 StarWorld Macau +12% +2% $2,916 $2,973 Broadway Macau™ (1)% (1)% $2,659 $146 $145 $144 $29
Slide 16: GEG Adjusted EBITDA Q4 2018
GEG Adjusted EBITDA Q4 2018 Group Adjusted EBITDA in Q4 2018 grew 4% YoY and 12% QoQ to $4.3 billion • Played lucky which increased EBITDA by approx. $77 million • Normalized EBITDA grew 4% YoY and 1% QoQ to $4.3 billion GEG Adjusted EBITDA (HK$’m) YoY QoQ $4,333 $4,159 $3,879 GEG Total +4% +12% Gal
Slide 17: Galaxy Macau
Galaxy Macau February 2019 17
Slide 18: Galaxy Macau Q4 2018
Galaxy Macau Q4 2018 Galaxy Macau™ Q4 2018 Adjusted EBITDA grew 2% YoY and 16% QoQ to $3.4 billion Galaxy Macau YoY QoQ Total Gross Revenue 0% +8% Net Revenue of $10.4 billion grew 2% YoY and 11% QoQ Total Net Revenue +2% +11% • VIP win decreased 9% YoY and grew 4% QoQ to $6.6 billion Adjusted EBI
Slide 19: StarWorld Macau
StarWorld Macau February 2019 19
Slide 20: StarWorld Macau Q4 2018
StarWorld Macau Q4 2018 StarWorld Macau Q4 2018 Adjusted EBITDA grew 19% YoY and decreased 4% QoQ to $893 million StarWorld Macau YoY QoQ Total Gross Revenue +12% +4% Net Revenue of $3.0 billion, up 12% YoY and 2% QoQ Total Net Revenue +12% +2% • VIP win grew 13% YoY and 9% QoQ to $2.4 billion Adjus
Slide 21: Broadway Macau
Broadway Macau™ February 2019 21
Slide 22: Broadway Macau Q4 2018
Broadway Macau™ Q4 2018 Broadway Macau™ Q4 2018 Adjusted EBITDA of $8 million, versus $7 million in Q4 2017 Broadway Macau™ YoY QoQ Total Gross Revenue (1)% 0% Net Revenue of $144 million, versus $146 million in prior (1)% (1)% Total Net Revenue year and $145 million in Q3 2018 Adjusted EBITDA +14%
Slide 23: City Clubs Q4 2018
City Clubs Q4 2018 City Clubs Q4 2018 Adjusted EBITDA was flat YoY and grew 4% QoQ to $29 million City Clubs Adjusted EBITDA (HK$’m) $29 $29 $28 2017 Q4 2018 Q3 2018 Q4 February 2019 23
Slide 24: Construction Materials Q4 2018
Construction Materials Q4 2018 Q4 2018 Adjusted EBITDA decreased 13% YoY to $205 million Construction Materials Adjusted EBITDA (HK$’m) $235 $197 $205 2017 Q4 2018 Q3 2018 Q4 February 2019 24
Slide 25: Selected 2018 Awards
Selected 2018 Awards Award Presenter Asiamoney Asia’s Outstanding Companies Poll – Most Outstanding Company in Hong Kong – Asiamoney Consumer Discretionary Sector Sina 2018 Golden Lion Awards – Best Listed Companies Sina GEG Hong Kong Investor Relations Best IR Company (Large Cap) Association
Slide 26: Selected 2018 Awards
Selected 2018 Awards Award Presenter Broadway Macau™ Business Awards of Macau 2018 - Excellence Award for Environmental Performance Macau Business Magazine Caring Company Scheme – 15 Years Plus Caring Company Logo The Hong Kong Council of Social Service Grand Award-Excellence in Environmental
Slide 27: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • To maintain our attractiveness, we are proceeding on a $1.5 billion property enhancement program for Galaxy Macau™ and StarWorld Macau. This program not only enhances our attractiveness, but also includes preparation work for the effective f
Slide 28: GEG Development Update
GEG Development Update Hengqin • Continue to make progress with our concept plan for our Hengqin project. Hengqin will allow GEG to develop a low density leisure destination resort that will complement our high energy resorts in Macau International • On 20 July 2018 the Japanese Diet passed the Inte
Slide 29: Summary: Positioned for Growth
Summary Positioned for Growth Corporate • 2018FY Net Revenue of $55.2 billion, up 14% YoY and Adjusted EBITDA of • GEG $16.9 billion, up 19% YoY • Q4 2018 Adjusted EBITDA of $4.3 billion, up 4% YoY • • 2018FY NPAS of a record $13.5 billion, up 29% YoY Paid two special dividends in 2018: $0.41 per sh
Slide 30: Disclaimer
Disclaimer This document and any verbal presentation or discussion have been prepared by Galaxy Entertainment Group Limited (the “Company”) solely for your personal reference. The information provided has not been independently verified. No representation or warranty express or implied is made as to
Slide 31: Q4 and Annual Results for the period end December 31, 2018
Q4 and Annual Results for the period end December 31, 2018 28 February, 2019
Galaxy Entertainment Group — Q4 2018 Earnings Presentation on 6ix