Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q3 2016 Earnings Presentation
21 slides from Galaxy Entertainment's earnings presentation, Oct 26, 2016
Slide 1: Selected Unaudited 2016 Third Quarter Financial Data
Selected Unaudited 2016 Third Quarter Financial Data October 26, 2016
Slide 2: Executive Summary
Executive Summary GEG: Continues to Drive Mass Business, Profitable Volumes and Control Costs • Q3 Group Revenue of $12.9 billion, up 5% YoY, up 6% QoQ • Q3 Group Adjusted EBITDA of $2.7 billion, up 28% YoY and up 18% QoQ • Played lucky in Q3 which increased Adjusted EBITDA by approximately $240 mil
Slide 3: Executive Summary
Executive Summary StarWorld Macau: Continues Successful Transition to Mass • Q3 Revenue of $2.8 billion, down 5% YoY, up 4% QoQ • Q3 Adjusted EBITDA of $536 million, up 4% YoY and up 15% QoQ • Played lucky in Q3 which increased Adjusted EBITDA by approximately $30 million • Hotel occupancy for Q3 wa
Slide 4: Executive Summary
Executive Summary Balance Sheet: Remains Well Capitalized, Liquid and Virtually Debt Free • Cash and liquid investments was $14.1 billion as at September 30, 2016 • Virtually debt free and net cash of $12.9 billion as at September 30, 2016 • Paying the previously announced special dividend of $0.18
Slide 5: Q3 2016 Results
Q3 2016 Results October 2016 5
Slide 6: GEG Revenue Q3 2016
GEG Revenue Q3 2016 Group revenue in Q3 2016 grew 5% YoY and 6% QoQ to $12.9 billion GEG Revenue (HK$’m) Q3 Q2 to Q3 16’ YoY QoQ $12,929 GEG Total +5% +6% $12,332 $12,169 $526 $490 $537 $26 $167 $26 $189 $30 $169 Galaxy Macau™ +8% +8% $2,945 $2,795 $2,681 StarWorld (5)% +4% $9,415 Broadway Macau™ (1
Slide 7: GEG EBITDA Q3 2016
GEG EBITDA Q3 2016 Group EBITDA in Q3 2016 up 28% YoY and 18% sequentially to $2.7 billion GEG EBITDA (HK$’m) Q3 Q2 to Q3 16’ YoY QoQ $2,681 GEG Total +28% +18% $2,101 $2,273 $104 $26 $7 $113 $536 $94 Galaxy Macau™ +31% +16% $30 $6 $26 $465 $514 StarWorld +4% +15% $2,206 $1,896 $1,683 Broadway Macau
Slide 8: Galaxy Macau
NS Galaxy Macau™ IRE GEG October 2016
Slide 9: Galaxy Macau Q3 2016
Galaxy Macau Q3 2016 Galaxy Macau™ Q3 2016 EBITDA grew 31% YoY and 16% QoQ to $2.2 billion Revenue Q3 Q2 to Q3 16’ • Total revenue of $9.4 billion grew 8% YoY and YoY QoQ 8% QoQ Galaxy Macau™ +8% +8% VIP Gaming# +3% +5% • VIP revenue grew 3% YoY and 5% QoQ to $4.6 billion Mass Gaming +19% +10% Slot
Slide 10: StarWorld Macau
StarWorld Macau October 2016 10
Slide 11: StarWorld Macau Q3 2016
StarWorld Macau Q3 2016 StarWorld Macau Q3 2016 EBITDA increased 4% YoY and 15% QoQ to $536 million Q3 Q2 to Q3 16’ Revenue YoY QoQ • Total revenue of $2.8 billion declined 5% YoY StarWorld Total (5)% +4% but up 4% QoQ VIP Gaming (21)% (4)% • VIP revenue declined 21% YoY and 4% QoQ to Mass Gaming +2
Slide 12: Broadway Macau
Broadway Macau™ October 2016 12
Slide 13: Broadway Macau Q3 2016
Broadway Macau™ Q3 2016 Broadway Macau™ reported $167 million revenue and $7 million EBITDA for Q3 2016 Q3 Q2 to Q3 16’ Revenue YoY QoQ • Total revenue $167 million, Broadway Total (12)% (1)% Mass Gaming (17)% (10)% decreased 1% sequentially Slots 0 (11)% • Adjusted EBITDA of $7 million Non-Gaming (
Slide 14: City Clubs Q3 2016
City Clubs Q3 2016 City Clubs’ Q3 2016 EBITDA of $26 million, matched YoY and declined $4 million QoQ City Clubs EBITDA (HK$’m) $30 $26 $26 2015 Q3 2016 Q2 2016 Q3 October 2016 14
Slide 15: Construction Materials Q3 2016
Construction Materials Q3 2016 CMD’s Q3 2016 EBITDA of $104 million increased 11% YoY and declined 8% QoQ Construction Materials EBITDA (HK$’m) $113 $104 $94 2015 Q3 2016 Q2 2016 Q3 October 2016 15
Slide 16: Selected Awards 2016 (January to October)
Selected Awards 2016 (January to October) Award Organization Best Managed Company in Asia - Gaming Euromoney 亞洲最佳管理公司 – 博彩業 《歐洲貨幣》雜誌 The Most Generous Chinese of “Hurun Non-Mainland Chinese Hurun Report GEG Philanthropy List 2016” 胡潤百富 「2016 胡潤港澳台及海外華人慈善榜」首善 Socially Responsible Operator Internation
Slide 17: Cash and Debt Update
Cash and Debt Update GEG continues to remain well capitalized with Cash and Liquid Investments of $14.1 billion at September 30, 2016 including restricted cash of $0.5 billion, “Net Cash” position of $12.9 billion and virtually debt free Cash and “Net Cash” on Hand (HK$’b) Cash & Liquid Investments
Slide 18: GEG Development Update
GEG Development Update Cotai Phases 3 & 4 • Continue to move forward with Phase 3 with the potential to commence site preparation works in late 2016 and Phase 4 in 2017, with substantial floor area allocated to non-gaming and primarily targeting Meetings Incentives Conference and Events (MICE), ente
Slide 19: Summary Positioned for Growth
Summary Positioned for Growth Corporate • Q3 2016 Revenue of $12.9 billion and EBITDA of $2.7 billion, up 5% and 28% YoY, respectively • Paying the previously announced special dividend of $0.18 per share on October 28, 2016 • Galaxy commenced Operations • Galaxy Macau™ reported $9.4 billion of Reve
Slide 20: 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 21: Selected Unaudited 2016 Third Quarter Financial Data
Selected Unaudited 2016 Third Quarter Financial Data October 26, 2016
Galaxy Entertainment Group — Q3 2016 Earnings Presentation on 6ix