Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — H1 2015 Earnings Presentation
24 slides from Galaxy Entertainment's earnings presentation, Aug 19, 2015
Slide 1: Interim Results 2015
Interim Results 2015 August 19, 2015
Slide 2: Executive Summary
Executive Summary GEG: Credible Results in a Challenging Market • Half year revenue of $25.4 billion, down 34% year-on-year • Half year Adjusted EBITDA of $4.2 billion, down 43% year-on-year • Second quarter Adjusted EBITDA of $1.9 billion, down 46% year-on-year • Half year Net profit attributable t
Slide 3: Executive Summary
Executive Summary Broadway Macau™: Successful opening of Broadway Macau™ as Macau’s new landmark for family entertainment • Second quarter revenue of $64 million, reflecting only 35 days of operation • Second quarter Adjusted EBITDA of $(2) million, including playing unlucky by $5 million in the qua
Slide 4: Galaxy Macau & Broadway Macau Opening
Galaxy Macau™ & Broadway Macau™ Opening August 2015 4
Slide 5: Interim Results 2015
Interim Results 2015 August 2015 5
Slide 6: GEG Revenue Summary 1H 2015
GEG Revenue Summary 1H 2015 Revenue in first half 2015 declined 34% YoY to $25.4 billion GEG Revenue (HK$’m) 1H 15’ YoY 2H 14’ to 1H 15’ $38,407 $33,345 $92 $1,019 GEG Total (34)% (24)% $1,018 $12,341 $74 Galaxy Macau™ (31)% (22)% $25,371 $10,293 $909 (42)% (31)% $56 $64 StarWorld $7,129 Broadway Ma
Slide 7: GEG EBITDA Summary 1H 2015
GEG EBITDA Summary 1H 2015 Group EBITDA decreased 43% YoY to $4.2 billion in the first half of 2015 • Played unlucky in gaming operations which reduced profitability by approximately $265 million for the first half and $335 million in the second quarter GEG EBITDA (HK$’m) $7,288 1H 15’ YoY 2H 14’ to
Slide 8: GEG 1H 2015 NPAS
GEG 1H 2015 NPAS 1H 2015 NPAS declined 66% to $2.0 billion included approx. $1.0 billion of non-recurring charges primarily from pre-opening expenses 1H15 vs (in HK$mn) 1H14 1H15 1H14 Revenue $38,407 $25,371 -34% EBITDA $7,288 $4,159 -43% Net Profit attributable to shareholders (NPAS) $5,971 $2,030
Slide 9: Cash and Long-term Debt Update
Cash and Long-term Debt Update GEG continues to remain well capitalized with Cash of $9.4 billion at June 30, 2015 including restricted cash of $1.8 billion and a “Net Cash” position of $4.6 billion Cash on Hand and Long-term Debt (HK$ billion) Cash on Hand Debt $9.4 bn $9.0 bn $4.8 bn $0.8 bn Dec 3
Slide 10: Q2 2015 Results
Q2 2015 Results August 2015 10
Slide 11: GEG Revenue Summary Q2 2015
GEG Revenue Summary Q2 2015 Group revenue in Q2 2015 decreased 36% YoY to $11.7 billion Q2 Q2 15’ to Q1 15’ GEG Revenue (HK$’m) YoY QoQ $13,669 GEG Total (36)% (14)% $11,702 $460 $31 Galaxy Macau™ (34)% (13)% $449 $3,966 $25 $64 $3,163 StarWorld (42)% (20)% $9,212 Broadway Macau™ n/a n/a $8,001 City
Slide 12: GEG EBITDA Summary Q2 2015
GEG EBITDA Summary Q2 2015 Group EBITDA in Q2 2015 decreased 46% YoY to $1.9 billion • Played unlucky in gaming operations which reduced profitability by approx. $335 million GEG EBITDA (HK$’m) Q2 Q1 15’ to Q2 15’ YoY QoQ $2,302 $48 $1,857 GEG Total (46)% (19)% $31 $605 $96 $25 Galaxy Macau™ (47)% (
Slide 13: Galaxy Macau
Galaxy Macau August 2015 13
Slide 14: Galaxy Macau Q2 2015
Galaxy Macau Q2 2015 Galaxy Macau™ Q2 2015 EBITDA declined 47% YoY to $1.4 billion Revenue Q2 Q1 15’ to Q2 15’ YoY QoQ • Included only 35 days of operation of Phase 2 Galaxy Macau™ (34)% (13)% • Total revenue of $8.0 billion decreased 34% YoY VIP Gaming# (44)% (17)% Mass Gaming (17)% (13)% • VIP re
Slide 15: StarWorld Macau
StarWorld Macau August 2015 15
Slide 16: StarWorld Macau Q2 2015
StarWorld Macau Q2 2015 StarWorld Macau Q2 2015 EBITDA declined 38% YoY to $509 million Revenue Q2 Q1 15’ to Q2 15’ YoY QoQ • Total revenue of $3.2 billion declined 42% YoY StarWorld Total (42)% (20)% • VIP revenue declined 50% YoY to $2.1 billion VIP Gaming# (50)% (27)% Mass Gaming (13)% +1% • Mass
Slide 17: Broadway Macau
Broadway Macau™ August 2015 17
Slide 18: Broadway Macau Q2 2015
Broadway Macau™ Q2 2015 Broadway Macau™ generated $(2) million EBITDA and $64 million revenue in 35 days of operation • Opened on May 27, 2015 • Total revenue $64 million • EBITDA of $(2) million including $5 million of bad luck • Non-gaming revenue was $23 million • 320-rooms Hotel reported strong
Slide 19: Acknowledgment of Excellence and Recognition in Q2 2015
Acknowledgment of Excellence Award Organization Selected Awards Casino Operator of theand Recognition Year Australia / Asia in Q2 2015 International Gaming Awards 年度最佳娛樂營運商 (澳洲/亞洲) 國際博彩業大獎 4th Outstanding Corporate Social Responsibility Award The Mirror GEG 第四屆傑出企業社會責任獎 《鏡報》月刊 Best Investor Relation
Slide 20: GEG Development Update
GEG Development Update Cotai Phases 3 & 4 • Site investigation works scheduled to commence in later part of 2015 / early 2016 Hengqin • Continuing with concept plans for the 2.7 sq km land parcel International • GEG continues to actively explore opportunities in overseas markets • Announced strategi
Slide 21: Monte-Carlo SBM: Selected Properties
Monte-Carlo SBM: Selected Properties Hotel de Paris Monte-Carlo Casino de Monte-Carlo Hotel Hermitage Monte-Carlo Casino Café de Paris Monte-Carlo Bay Hotel & Resort Monte-Carlo Bay Casino August 2015 21
Slide 22: Summary Positioned for Growth
Summary Positioned for Growth Corporate • Galaxy Macau™ Phase 2 and Broadway Macau™ opened on time and on budget on May 27, 2015 • 2Q 2015 results reflects only 35 days of operations of Galaxy Macau™ Phase 2 and Broadway Macau™ • 2Q 2015 Group Revenue of $11.7 billion, down 36% YoY • Galaxy commence
Slide 23: 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 24: Interim Results 2015
Interim Results 2015 August 19, 2015
Galaxy Entertainment Group — H1 2015 Earnings Presentation on 6ix