Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q3 2010 Earnings Presentation
23 slides from Galaxy Entertainment's earnings presentation, Oct 28, 2010
Slide 1: Selected Unaudited 2010 Third Quarter Financial Data
Selected Unaudited 2010 Third Quarter Financial Data October 28, 2010
Slide 2: Executive Summary
Executive Summary Operational Highlights • Galaxy Entertainment reports EIGHTH consecutive quarter of EBITDA growth with $616 million in Q3 2010, up 115% yoy • StarWorld reports NINTH consecutive quarter of EBITDA growth with fourth consecutive all time quarterly EBITDA record of $568 million in Q3
Slide 3: Galaxy Entertainment Group
Galaxy Entertainment Group October 28, 2010 3
Slide 4: GEG Revenue Summary
GEG Revenue Summary Group revenue grew 88% over prior year led by StarWorld Revenue (HK$ mn) 5,371 % Change % Change Q3 yoy Q3 to Q2 QoQ 282 391 GEG Total +88% +16% 2,853 StarWorld +114% +20% City Clubs +12% +1% 309 349 4,698 Construction Materials (9)% (9)% 2,195 Q3 09 Q3 10 StarWorld CityClubs Con
Slide 5: GEG EBITDA Summary
GEG EBITDA Summary GEG reports 8th consecutive quarter of EBITDA growth • Q3 Group EBITDA increased 115% yoy led by StarWorld EBITDA increase of 161% EBITDA*(HK$ mn) 616 573 69 95 43 % Change % Change 41 Q3 yoy Q3 to Q2 QoQ 356 417 68 79 30 GEG Total +115% +8% 275 287 32 243 180 46 64 64 515 568 Sta
Slide 6: StarWorld Hotel
© SR GEG £12 «ja % StarWorld Hotel October 28, 2010 6
Slide 7: StarWorld Overview
StarWorld Overview 9 consecutive quarters of EBITDA growth % Change % Change Revenue Q3 yoy Q3 to Q2 QoQ • 4 consecutive all time record StarWorld Total 114% 20% EBITDA quarters VIP Gaming 129% 20% Mass Gaming 35% 31% • Q3 EBITDA grew 161% over Slots 67% 11% prior year to HK$ 568 million StarWorld E
Slide 8: StarWorld VIP Turnover
StarWorld VIP Turnover StarWorld continues to outerperform the market Macau VIP Gaming Rolling (HK$'b) StarWorld VIP Gaming Rolling (HK$'b) 137 129 102 1,021 98 973 891 81 797 687 558 55 54 495 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 • Macau’s VIP rolling
Slide 9: StarWorld EBITDA Margin
StarWorld EBITDA Margin Q3 2010 EBITDA margin of 21% reflects StarWorld’s efficiency especially given VIP focus HK GAAP US GAAP 23% 21% 18% 18% 17% 17% 16% 13% 12% 11% 11% 10% 10% 10% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 October 28, 2010 Note: estimates
Slide 10: StarWorld Hotel Occupancy
StarWorld Hotel Occupancy at StarWorld consistently higher than overall market with a focus driving gaming occupancy ADR (HK$) Occupancy Rate 1,242 97% 97% 1,173 1,045 79% 1,020 75% Q3 2009 Q3 2010 Q3 2009 Q3 2010 StarWorld Average of 5 Star Hotel in the market StarWorld Average of 5 Star Hotel in t
Slide 11: StarWorld Hotel Recognition
StarWorld Hotel Recognition Year Award Association World Hotel． Continental Diamond 2010 World Hotel Association, China Awards – Top Ten Charming Hotels 7th Golden Pillow Award of China Best Business Hotel in Macau Hotels Best Entertainment and Gaming Theme Golden Horse Award of China Hotel Hotel To
Slide 12: City Clubs
City Clubs October 28, 2010 12
Slide 13: City Clubs
City Clubs Q3 EBITDA (HK$ mn) • CityClubs continue to make 41 43 consistent & valuable contribution • Effective management to ensure continuing profitability Q3 09 Q3 10 October 28, 2010 13
Slide 14: Construction Materials
Construction Materials October 28, 2010 14
Slide 15: Construction Materials
Construction Materials Q3 EBITDA (HK$ mn) 69 64 • Solid performer with improving market conditions • Shift in business mixed towards more high value chain supplies and growth of Q3 09 Q3 10 Joint Ventures in Mainland China YTD September EBITDA (HK$ mn) 232 • Joint Ventures do not consolidate revenue
Slide 16: Liquidity Update
Liquidity Update October 28, 2010 16
Slide 17: Cash on Hand & Long-Term Debt
Cash on Hand & Long-Term Debt Galaxy Debt Profile (HK$'b) Jun 30, 2010 Sep 30, 2010 $3.5 • Closed HK$9 billion Club Loan to finance Galaxy Macau™ in June $1.3 $1.3 $1.5 2010 $0.6 $0.0 • HK$1.5 billion bridge loan at 30 CB 2011 Bridge Loan Bank Loans June 2010 subsequently repaid Galaxy Total Debt (H
Slide 18: Galaxy Macau
FUR GEG MACAU Rm PY ok “World Class, Asian Heart” MIRE + TSSSEOM 4 October 28, 2010 18
Slide 19: Galaxy Macau Update
Galaxy Macau™ Update Well positioned to capitalize on surging Macau market conditions which grew 60% year to date through September 2010 Galaxy Macau™ represents the only new capacity opening until at least the end of 2011 • Accelerated opening with 1,400 rooms, remains on schedule and on budget for
Slide 20: Galaxy Macau
Galaxy Macau™ October, 2010 October 28, 2010 20
Slide 21: Summary Positioned for Growth
Summary Positioned for Growth Operations • GEG reports EIGHTH consecutive quarter of EBITDA growth • Galaxy commenced • StarWorld reports NINTH consecutive quarter EBITDA growth with a vision Financing • Closed upsized club loan to $9.0 billion to finance Galaxy Macau™ • “To be Asia’s • Remains liqu
Slide 22: 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 23: Selected Unaudited 2010 Third Quarter Financial Data
Selected Unaudited 2010 Third Quarter Financial Data October 28, 2010
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