Macau – 31 August 2017 –
Galaxy Entertainment posted its biggest quarterly earnings gain in almost five years as high-stakes gamblers helped to boost profit in Macau, the world’s largest casino hub.
The casino operator’s adjusted earnings before interest, taxes, depreciation and amortization climbed 45 percent to about HK$3.29 billion (US$420 million) in the second quarter, according to Bloomberg calculations based on Galaxy data. That’s the steepest increase since the third quarter of 2012, and tops the median estimate of HK$3.2 billion from eight analysts surveyed by Bloomberg.
Casino operators in Macau including Galaxy are benefiting from high-stakes VIP gamblers, even as the companies shift to courting tourists and leisure gamblers. The company has boosted business in the higher margin mass-market segment and non-gaming elements such as hotels to fend off competition from MGM Resorts International and Las Vegas Sands Corp.
Galaxy posted a “strong performance in the context of the competitive new supply on Cotai,” said Union Gaming Group analyst Grant Govertsen after the results, referring to the Macau strip where new casinos have popped up. “In addition, their StarWorld property on the peninsula continues to show strong growth, making it a significant outperform in that geography.”