Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q2 2019 Earnings Presentation
31 slides from Galaxy Entertainment's earnings presentation, Aug 13, 2019
Slide 1: Q2 & Interim Results 2019
Q2 & Interim Results 2019 13 August, 2019
Slide 2: Executive Summary: GEG Solid Mass Performance, Challenging VIP Segment
Executive Summary GEG: Solid Mass Performance, Challenging VIP Segment Q2 2019 • Q2 Group Net Revenue of $13.2 billion, down 5% year-on-year and up 1% quarter-on-quarter • Q2 Group Adjusted EBITDA of $4.3 billion, flat year-on-year and up 9% quarter-on-quarter • Played lucky in Q2 which increased Ad
Slide 3: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Solid Mass Performance, Property Enhancement Program on Track Q2 2019 • Q2 Net Revenue of $9.5 billion, down 4% year-on-year and up 3% quarter-on-quarter • Q2 Adjusted EBITDA of $3.2 billion, flat year-on-year and up 7% quarter-on-quarter • Played lucky in Q2 which i
Slide 4: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Solid Mass Performance, Property Enhancement Program on Track Q2 2019 • Q2 Net Revenue of $2.8 billion, down 10% year-on-year and down 8% quarter-on-quarter • Q2 Adjusted EBITDA of $943 million, down 4% year-on-year and down 1% quarter-on-quarter • Played lucky in
Slide 5: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported By Macau SMEs Q2 2019 • Q2 Net Revenue of $147 million versus $131 million in Q2 2018 and $151 million in Q1 2019 • Q2 Adjusted EBITDA of $6 million versus $2 million in Q2 2018 and $15 million in Q1 2019 • Played
Slide 6: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Maintains a Healthy and Liquid Balance Sheet • Cash and liquid investments were $50.4 billion and net cash of $43.9 billion as at 30 June 2019 • Debt of $6.5 billion as at 30 June 2019 primarily associated with treasury yield management program GEG Special Dividends
Slide 7: Executive Summary: Development Update
Executive Summary Development Update: Continue to Pursue Development Opportunities • Continue to progress with the previously announced $1.5 billion renovation enhancement program in both Galaxy Macau™ and StarWorld Macau, short term this has caused some disruption • Cotai Phases 3 & 4 – Continue wi
Slide 8: Interim Results 2019
Interim Results 2019 August 2019 8
Slide 9: GEG Revenue Summary 1H 2019
GEG Revenue Summary 1H 2019 Group Net Revenue in the first half of 2019 was down 7% YoY to $26.2 billion GEG Gross Revenue (HK$’m) GEG Net Revenue (HK$’m) $37,607 $35,809 $33,566 $28,058 $27,153 $26,219 $26,771 $25,999 $24,090 $19,793 $19,698 $18,790 $8,825 $8,227 $7,773 $6,270 $5,889 $5,743 $289 $3
Slide 10: GEG Revenue Summary 1H 2019
GEG Revenue Summary 1H 2019 Group Net Revenue in the first half of 2019 was down 7% YoY to $26.2 billion Gross Net Gross Net YoY Revenue Revenue HoH Revenue Revenue GEG Total (11)% (7)% GEG Total (6)% (3)% Galaxy Macau™ (10)% (5)% Galaxy Macau™ (7)% (5)% StarWorld (12)% (8)% StarWorld (6)% (2)% Broa
Slide 11: GEG Adjusted EBITDA Summary 1H 2019
GEG Adjusted EBITDA Summary 1H 2019 Group Adjusted EBITDA was down 4% YoY to $8.3 billion in the first half of 2019 GEG Adjusted EBITDA (HK$’m) $8,645 $8,315 $8,212 YoY HoH GEG Total (4)% +1% Galaxy Macau™ (3)% (2)% $6,481 $6,258 $6,390 StarWorld Macau (5)% +4% Broadway Macau™ +40% +24% $1,892 $1,99
Slide 12: GEG LTM Adjusted EBITDA Summary
GEG LTM Adjusted EBITDA Summary Last twelve months Adjusted EBITDA ended June 30, 2019 grew 1% YoY to $16.5 billion GEG EBITDA (HK$’m) Broadway Macau™ & Others StarWorld Macau Galaxy Macau™ $16,326 $16,683 $16,857 $16,521 $16,527 $12,548 $12,795 $12,871 $12,632 $12,648 $3,540 $3,668 $3,810 $3,756 $3
Slide 13: GEG 1H 2019 NPAS
GEG 1H 2019 NPAS 1H 2019 NPAS decreased 7% YoY to $ 6.7 billion including $460 million of net non-recurring items (in HK$'m) 1H18 1H19 YoY Net Revenue $ 28,058 $ 26,219 -7% Adjusted EBITDA $ 8,645 $ 8,315 -4% Net Profit attributable to shareholders (NPAS) $ 7,206 $ 6,680 -7% Non-recurring Expenses $
Slide 14: Q2 2019 Results
Q2 2019 Results August 2019 14
Slide 15: GEG Revenue Q2 2019
GEG Revenue Q2 2019 Group Net Revenue in Q2 2019 decreased 5% YoY and grew 1% QoQ to $13.2 billion GEG Net Revenue (HK$’m) YoY QoQ $13,925 $13,045 $13,174 GEG Total (5)% +1% Galaxy Macau™ (4)% +3% $9,949 $9,264 $9,526 StarWorld Macau (10)% (8)% $3,060 $2,987 $2,756 Broadway Macau™ +12% (3)% $131 $15
Slide 16: GEG Adjusted EBITDA Q2 2019
GEG Adjusted EBITDA Q2 2019 Group Adjusted EBITDA in Q2 2019 was flat YoY and grew 9% QoQ to $4.3 billion • Played lucky which increased EBITDA by approx. $349 million • Normalized EBITDA decreased 11% YoY and grew 3% QoQ to $4.0 billion GEG Adjusted EBITDA (HK$’m) YoY QoQ $4,326 $4,332 $3,983 GEG T
Slide 17: Galaxy Macau
NS Galaxy Macau™ FUR GEG August 2019
Slide 18: Galaxy Macau Q2 2019
Galaxy Macau Q2 2019 Galaxy Macau™ Q2 2019 Adjusted EBITDA was flat YoY and grew 7% QoQ to $3.2 billion Galaxy Macau YoY QoQ Total Gross Revenue (10)% +1% Net Revenue of $9.5 billion decreased 4% YoY and grew 3% QoQ (4)% +3% Total Net Revenue • VIP win decreased 25% YoY and grew 5% QoQ to $5.5 bil
Slide 19: StarWorld Macau
StarWorld Macau August 2019 19
Slide 20: StarWorld Macau Q2 2019
StarWorld Macau Q2 2019 StarWorld Macau Q2 2019 Adjusted EBITDA decreased 4% YoY and 1% QoQ to $943 million StarWorld Macau YoY QoQ Total Gross Revenue (14)% (10)% Net Revenue of $2.8 billion decreased 10% YoY and 8% QoQ (10)% (8)% Total Net Revenue • VIP win decreased 26% YoY and 17% QoQ to $1.8 bi
Slide 21: Broadway Macau
Broadway Macau™ August 2019 21
Slide 22: Broadway Macau Q2 2019
Broadway Macau™ Q2 2019 Broadway Macau™ Q2 2019 Adjusted EBITDA of $6 million, versus $2 million in Q2 2018 Broadway Macau™ YoY QoQ Total Gross Revenue +12% (3)% Net Revenue of $147 million, versus $131 million in prior +12% (3)% Total Net Revenue year and $151 million in Q1 2019 Adjusted EBITDA +20
Slide 23: City Clubs Q2 2019
City Clubs Q2 2019 City Clubs Q2 2019 Adjusted EBITDA grew 4% YoY and 7% QoQ to $29 million City Clubs Adjusted EBITDA (HK$’m) $29 $28 $27 2018 Q2 2019 Q1 2019 Q2 August 2019 23
Slide 24: Construction Materials Q2 2019
Construction Materials Q2 2019 Q2 2019 Adjusted EBITDA grew 16% YoY and 82% QoQ to $364 million Nan Gang Slag Plant Construction Materials Adjusted EBITDA (HK$’m) $364 $315 $200 2018 Q2 2019 Q1 2019 Q2 August 2019 24
Slide 25: Selected Awards in 1H 2019
Selected Awards in 1H 2019 Award Presenter Casino Operator of the Year Australia & Asia 12th International Gaming Awards GEG Hong Kong Investor Relations 3 Years IR Awards Winning Company - Certificate of Excellence Association Integrated Resort of the Year 12th International Gaming Awar
Slide 26: Cash and Debt Update
Cash and Debt Update Healthy Balance Sheet • GEG continues to remain well capitalized with Cash and Liquid Investments of $50.4 billion and net cash position of $43.9 billion as at 30 June 2019 • Debt of $6.5 billion as at 30 June 2019 primarily reflects ongoing treasury yield management initiative
Slide 27: GEG Development Update: Cotai
GEG Development Update Cotai - The Next Chapter • GEG is uniquely positioned for long term growth • We continue with development works for Phases 3 & 4, which will include approximately 4,500 hotel rooms, including family and premium high end rooms, 400,000 square feet of MICE space, a 500,000 squar
Slide 28: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • To maintain our resorts competitive position, we are proceeding with a $1.5 billion property enhancement program for Galaxy Macau™ and StarWorld Macau • This program not only enhances our resorts attractiveness, but also includes preparation
Slide 29: Summary: Positioned for Growth
Summary Positioned for Growth Corporate • 1H Group Adjusted EBITDA of $8.3 billion, down 4% YoY • Q2 Group Adjusted EBITDA of $4.3 billion, flat YoY and up 9% QoQ • Paid a special dividend of $0.45 per share on 26 April 2019 • Subsequently, the Group will pay another special dividend of $0.46 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: Q2 & Interim Results 2019
Q2 & Interim Results 2019 13 August, 2019
Galaxy Entertainment Group — Q2 2019 Earnings Presentation on 6ix