Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q1 2017 Earnings Presentation
22 slides from Galaxy Entertainment's earnings presentation, May 4, 2017
Slide 1: Selected Unaudited 2017 First Quarter Financial Data
Selected Unaudited 2017 First Quarter Financial Data 4 May, 2017
Slide 2: Executive Summary: Q1 2017 Results Highlights
Executive Summary Q1 2017 Results Highlights • Group Adjusted EBITDA up 31% year-on-year to $3.2 billion • Uniquely Positioned for Future Growth • Launching Cotai - The Next Chapter - Soon • Continue to Pursue Japan with Monte-Carlo SBM Strategic Partnership • Paid Special Dividend of $0.26 Per Shar
Slide 3: Executive Summary: GEG and Galaxy Macau
Executive Summary GEG: Continues To Drive Mass, Profitable Volumes and Control Costs • Q1 Group Revenue of $14.1 billion, up 5% YoY, down 2% QoQ • Q1 Group Adjusted EBITDA of $3.2 billion, up 31% YoY, up 7% QoQ • Played lucky in Q1 which increased Adjusted EBITDA by approximately $50 million • Lates
Slide 4: Executive Summary: StarWorld Macau and Broadway Macau
Executive Summary StarWorld Macau: Delivers Another Solid Quarter Driven by Mass • Q1 Revenue of $3.1 billion, up 6% YoY, down 10% QoQ • Q1 Adjusted EBITDA of $649 million, up 27% YoY and up 2% QoQ • Played unlucky in Q1 which decreased Adjusted EBITDA by approximately $25 million • Hotel occupancy
Slide 5: Executive Summary: Balance Sheet and Development Update
Executive Summary Balance Sheet: Remains Well Capitalized and Liquid • Cash and liquid investments of $25.0 billion & net cash of $19.8 billion at 31 March 2017 • Debt of $5.2 billion as at 31 March 2017 primarily reflects ongoing treasury yield management initiative • Paid the previously announced
Slide 6: Q1 2017 Results
© HUA GEG A) PRE GEG Q1 2017 Results
Slide 7: GEG Revenue Q1 2017
GEG Revenue Q1 2017 Group revenue in Q1 2017 grew 5% YoY and declined 2% QoQ to $14.1 billion Q1 Q4 16’ to Q1 17’ GEG Revenue (HK$’m) YoY QoQ $14,359 $14,097 $13,369 GEG Total +5% (2)% Galaxy Macau™ +5% +1% $10,118 $10,244 $9,790 StarWorld Macau +6% (10)% Broadway Macau™ (25)% (15)% $2,918 $3,433 $3
Slide 8: GEG Adjusted EBITDA Q1 2017
GEG Adjusted EBITDA Q1 2017 Group Adjusted EBITDA in Q1 2017 grew 31% YoY and 7% QoQ to $3.2 billion Q1 Q4 16’ to Q1 17’ GEG Adjusted EBITDA (HK$’m) YoY QoQ $3,180 $2,961 GEG Total +31% +7% $2,433 Galaxy Macau™ +27% +9% $2,369 $2,583 $2,037 StarWorld Macau +27% +2% Broadway Macau™ +100% (57)% $512 $
Slide 9: Galaxy Macau
NS Galaxy Macau™ May 2017
Slide 10: Galaxy Macau Q1 2017
Galaxy Macau Q1 2017 Galaxy Macau™ Q1 2017 Adjusted EBITDA grew 27% YoY and 9% QoQ to $2.6 billion Q4 16’ to Q1 Revenue Q1 17’ YoY QoQ Total revenue of $10.2 billion increased 5% YoY and 1% QoQ +5% +1% Total • VIP revenue declined 6% YoY but grew 1% QoQ to $5.1 billion VIP Gaming # (6)% +1% Mass Ga
Slide 11: StarWorld Macau
StarWorld Macau May 2017 11
Slide 12: StarWorld Macau Q1 2017
StarWorld Macau Q1 2017 StarWorld Macau Q1 2017 Adjusted EBITDA grew 27% YoY and 2% QoQ to $649 million Q4 16’ to Q1 Revenue Q1 17’ YoY QoQ Total revenue of $3.1 billion increased 6% YoY but declined Total +6% (10)% 10% QoQ VIP Gaming +3% (18)% • VIP revenue increased 3% YoY but decreased 18% QoQ to
Slide 13: Broadway Macau
Broadway Macau™ May 2017 13
Slide 14: Broadway Macau Q1 2017
Broadway Macau™ Q1 2017 Broadway Macau™ Q1 2017 Adjusted EBITDA of $6 million, versus $3 million in prior year and $14 million in Q4 2016 Q1 Q4 16’ to Q1 Total revenue of $135 million, versus $181 million in prior year Revenue YoY 17’ QoQ and $159 million in Q4 2016 Total (25)% (15)% • Mass win of $
Slide 15: City Clubs Q1 2017
City Clubs Q1 2017 City Clubs Q1 2017 Adjusted EBITDA down 8% YoY and 4% QoQ to $24 million City Clubs Adjusted EBITDA (HK$’m) $26 $25 $24 2016 Q1 2016 Q4 2017 Q1 May 2017 15
Slide 16: Construction Materials Q1 2017
Construction Materials Q1 2017 CMD Q1 2017 Adjusted EBITDA grew 25% YoY but down 8% QoQ to $115 million Construction Materials Adjusted EBITDA (HK$’m) $125 $115 $92 2016 Q1 2016 Q4 2017 Q1 May 2017 16
Slide 17: Selected Awards 2017
Selected Awards 2017 Award Presenter GEG Top 100 Hong Kong Listed Companies Award – Comprehensive Strength QQ.com x Finet Casino Integrated Resort of the Year International Gaming Awards The Supreme Award of Asia’s Most Favored Tourism Integrated Resort by Parent-Child The 17th Golden Horse Awards o
Slide 18: Cash and Debt Update
Cash and Debt Update Balance Sheet: Remains Well Capitalized and Liquid • Cash and liquid investments of $25.0 billion & net cash of $19.8 billion at 31 March 2017 • Debt of $5.2 billion as at 31 March 2017 primarily reflects ongoing treasury yield management initiative • Paid the previously announc
Slide 19: GEG Development Update
GEG Development Update Cotai - The Next Chapter • GEG is uniquely positioned for continued long term growth • We will soon commence construction on Cotai – The Next Chapter, which will include hotel, MICE, entertainment and gaming Hengqin • GEG’s concept plan for our Hengqin project continued to pro
Slide 20: Summary Positioned for Growth
Summary Positioned for Growth Corporate • Q1 2017 Adjusted EBITDA of $3.2 billion, up 31% YoY • Paid the previously announced special dividend of $0.26 per share on 28 April 2017 Operations • GEG commenced with • Galaxy Macau™ reported $10.2 billion of Revenue and $2.6 billion of Adjusted EBITDA in
Slide 21: 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 22: Selected Unaudited 2017 First Quarter Financial Data
Selected Unaudited 2017 First Quarter Financial Data 4 May, 2017
Galaxy Entertainment Group — Q1 2017 Earnings Presentation on 6ix