Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q2 2022 Earnings Presentation
32 slides from Galaxy Entertainment's earnings presentation, Aug 18, 2022
Slide 1: Q2 & Interim Results 2022
Q2 & Interim Results 2022 18 August, 2022
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I appreciate the opportunity to update you on GEG’s most recent activities and financial results for the second quarter and first half of 2022. We continue to support the Macau Government by providing hotels for quarantine and medical personnel. We would also like to
Slide 3: Executive Summary: GEG
Executive Summary GEG: Continues to support the Macau Government’s COVID-19 prevention efforts through our extensive CSR initiatives Q2 2022 • Q2 Group Net Revenue of $2.4 billion, down 56% year-on-year and down 41% quarter-on-quarter • Q2 Group Adjusted EBITDA of $(384) million, versus $1,132 milli
Slide 4: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Continues to be Impacted by COVID-19 and Travel Restrictions Q2 2022 • Q2 Net Revenue of $1.4 billion, down 62% year-on-year and down 53% quarter-on-quarter • Q2 Adjusted EBITDA of $(188) million, versus $924 million in Q2 2021 and $724 million in Q1 2022 • Normalize
Slide 5: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Continues to be Impacted by COVID-19 and Travel Restrictions Q2 2022 • Q2 Net Revenue of $220 million, down 76% year-on-year and down 48% quarter-on-quarter • Q2 Adjusted EBITDA of $(158) million, versus $135 million in Q2 2021 and $(58) million in Q1 2022 • There
Slide 6: Executive Summary: Broadway Macau
Executive Summary Broadway Macau™: Continues to be Impacted by COVID-19 and Travel Restrictions Q2 2022 • Q2 Net Revenue of $15 million, versus $14 million in Q2 2021 and $16 million Q1 2022 • Q2 Adjusted EBITDA of $(19) million, versus $(20) million in Q2 2021 and $(17) million in Q1 2022 • There w
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • As at 30 June 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion • As at 30 June 2022, core debt was $0.3 billion GEG Dividend • Given the ongoing impact of COVID-19, today the Board of Di
Slide 8: Executive Summary: Development Update
Executive Summary Development Update: Continue Making Progress on Cotai Phases 3 & 4 • Continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests • Cotai Phases 3 & 4 – Phase 3 is effectively completed and our efforts are firml
Slide 9: Interim Results 2022
Interim Results 2022 Aug 2022 9
Slide 10: GEG Revenue Summary 1H 2022
GEG Revenue Summary 1H 2022 Group Net Revenue in the first half of 2022 was down 39% YoY to $6.5 billion GEG Gross Revenue (HK$’m) GEG Net Revenue (HK$’m) $12,296 $10,194 $10,661 $9,034 GM, $8,420 $6,994 GM, GM, $6,927 $6,524 $7,226 GM, $6,050 GM, $4,940 GM,$4,512 BW, BW, BW, BW, BW, BW, SW, $2,385
Slide 11: GEG Revenue Summary 1H 2022
GEG Revenue Summary 1H 2022 Group Net Revenue in the first half of 2022 was down 39% YoY to $6.5 billion Gross Net Gross Net YoY Revenue Revenue HoH Revenue Revenue GEG Total (43)% (39)% GEG Total (31)% (28)% Galaxy Macau™ (41)% (38)% Galaxy Macau™ (29)% (25)% StarWorld (71)% (67)% StarWorld (58)% (
Slide 12: GEG Adjusted EBITDA Summary 1H 2022
GEG Adjusted EBITDA Summary 1H 2022 Group Adjusted EBITDA was $191 million in the first half of 2022, down 90% YoY • Normalized 2022 1H Adjusted EBITDA was $164 million after adjusting for good luck of $27 million, down 91% YoY GEG Adjusted EBITDA (HK$’m) YoY HoH $1,991 $1,546 GEG Total (90)% (88)%
Slide 13: GEG 1H 2022 NPAS
GEG 1H 2022 NPAS 1H 2022 Net Loss Attributable to Shareholders of $850 million, including $185 million of non-recurring items, Vs profit of $947 million in 1H 2021 (in HK$'m) 1H21 1H22 YoY Net Revenue $ 10,661 $ 6,524 -39% Adjusted EBITDA $ 1,991 $ 191 -90% Net Profit / (Loss) attributable to shareh
Slide 14: Q2 2022 Results
HUE GEG © she GEG Q2 2022 Results Aug 2022 14
Slide 15: GEG Revenue Q2 2022
GEG Revenue Q2 2022 Q2 Group Net Revenue of $2.4 billion, down 56% YoY and 41% QoQ GEG Net Revenue (HK$’m) 2021 Q2 2022 Q1 2022 Q2 YoY QoQ $5,565 GEG Total (56)% (41)% $4,100 Galaxy Macau™ (62)% (53)% GM, $3,809 $2,424 StarWorld Macau (76)% (48)% BW, GM, $3,077 BW, $14 $15 GM, $1,435 Broadway Macau™
Slide 16: GEG Adjusted EBITDA Q2 2022
GEG Adjusted EBITDA Q2 2022 Q2 Group Adjusted EBITDA of $(384) million, versus $1,132 million in Q2 2021 and $575 million in Q1 2022 • Normalized Q1 Adjusted EBITDA of $(408) million, after adjusting for good luck of approximately $24 million, versus $1,051 million in Q2 2021 and $572 million in Q1
Slide 17: Galaxy Macau
GALAXY Galaxy Macau™ RAR DT Aug 2022
Slide 18: Galaxy Macau Q2 2022
Galaxy Macau Q2 2022 Galaxy Macau™ Q2 Adjusted EBITDA of $(188) million, versus $924 million in Q2 2021 and $724 million in Q1 2022 Galaxy Macau YoY QoQ Net Revenue of $1.4 billion, down 62% YoY and 53% QoQ Total Gross Revenue (65)% (55)% • VIP win of $153 million, down 89% YoY and 73% QoQ Total N
Slide 19: StarWorld Macau
b Pa 2 *i@% StarWorld Macau = =m ' i Ba ry
Slide 20: StarWorld Macau Q2 2022
StarWorld Macau Q2 2022 StarWorld Macau Q2 Adjusted EBITDA of $(158) million, versus $135 million in Q2 2021 and $(58) million in Q1 2022 StarWorld Macau YoY QoQ Net Revenue of $220 million, down 76% YoY and 48% QoQ Total Gross Revenue (79)% (49)% • Mass win of $202 million, down 71% YoY and 51% QoQ
Slide 21: Broadway Macau
anaé®) Broadway Macau™ “i IRE GEG
Slide 22: Broadway Macau Q2 2022
Broadway Macau™ Q2 2022 Broadway Macau™ Q2 Adjusted EBITDA of $(19) million Vs $(20) million in Q2 2021 and $(17) million in Q1 2022 Net Revenue of $15 million, up 7% YoY and down 6% QoQ Broadway Macau™ YoY QoQ • Hotel occupancy was 32% for Q2 2022 Total Gross Revenue 0% (6)% Total Net Revenue +7% (
Slide 23: City Clubs Q2 2022
City Clubs Q2 2022 City Clubs Q2 Adjusted EBITDA was $11 million, down 45% YoY and up 38% QoQ, rationalized operations during the quarter Adjusted EBITDA (HK$’m) $20 $11 $8 2021 Q2 2022 Q1 2022 Q2 Aug 2022 23
Slide 24: Construction Materials Q2 2022
Construction Materials Q2 2022 Construction Materials Q2 Adjusted EBITDA decreased 41% YoY and increased 43% QoQ to $170 million • During Q2 the sale of construction materials was impacted by the various COVID-19 lockdowns within Mainland China and associated temporary suspension of construction sit
Slide 25: Selected Awards in 1H 2022
Selected Awards in 1H 2022 Award Presenter GEG Charitable Community Award International Gaming Award 2022 Macao Green Hotel Award 2021 – Environmental Performance Gold Award – Hotel Okura Environmental Protection Bureau (DSPA) Macau EarthCheck Certified 2022 • Gold Certification - Banyan Tree Macau
Slide 26: Recent Examples of GEG's CSR Efforts
Recent Examples of GEG’s CSR Efforts With a particular focus on supporting the Macau Government’s efforts to control COVID-19 Highlights of our prevention efforts against COVID-19 • Provided Broadway Hotel as self-health management hotel for persons with yellow health codes and then upgraded to a me
Slide 27: Cash and Debt Update
Cash and Debt Update Balance Sheet: Maintain a Healthy and Liquid Balance Sheet • As at 30 June 2022, cash and liquid investments were $29.0 billion and net cash was $20.3 billion • As at 30 June 2022, core debt was $0.3 billion • Given the ongoing impact of COVID 19, today the Board has decided not
Slide 28: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Cotai - The Next Chapter • GEG is uniquely positioned for long term growth. Phase 3 is effectively complet
Slide 29: GEG Development Update
GEG Development Update Cotai - The Next Chapter (continued) • We are now firmly focused on the development of Phase 4, which is already well under way. We see the premium market evolving with this segment preferring higher quality and more spacious rooms. We continue to proceed with the construction
Slide 30: Summary: Positioned for Growth
Summary Positioned for Growth Corporate – Continues to be Impacted by COVID-19 and Travel Restrictions • 1H Group Adjusted EBITDA of $0.2 billion Vs $2.0 billion in 1H 2021 • Q2 Group Adjusted EBITDA of $(0.4) billion, Vs $1.1 billion in Q2 2021 and $0.6 billion in Q1 2022 • Given the ongoing impact
Slide 31: 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 32: Q2 & Interim Results 2022
Q2 & Interim Results 2022 18 August, 2022
Galaxy Entertainment Group — Q2 2022 Earnings Presentation on 6ix