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Galaxy posts another strong quarter

HIGHTLIGHTS FROM THE RELEASE

  • GEG Group EBITDA of HK$712MM
  • Starworld EBITDA HK$664MM and revenue of HK$5,726MM
    • Turnover: HK$151BN
    • Win %: 2.9%
    • Net win: HK$4.4BN
    • EBITDA margin under GAAP would have been 23%
    • Annual ROI of 69% as of 1Q11
    • Occupancy 97%
  • City Clubs EBITDA of HK$57MM
  • Construction materials EBITDA of HK$68MM
  • Galaxy Macau on schedule and budget for May 15th opening
    • initial opening: 1,400 rooms, 50 F&B outlets, 30 retail shops, 450 tables and 1,100 slots
  • Cash: HK$4.2BN
  • "In 1Q 2011, all of the HK$1.3BN convertible notes converted into 173MM shares of common"

CALL NOTES

  • HK$11BN has been invested into Galaxy Macau as of March 31st.  7,600 team members on opening day.
  • Will conduct full simulations for 3 weeks before opening - with 8-10k people
  • Actively exploring developing plans for their remaining land bank

Q&A

  • Have 7,100 employees on the payroll at Galaxy Macau currently
  • Target return is mid to high teens for Galaxy Macau
  • Will operate 10 VIP / junket rooms upon opening Galaxy Macau
  • Split between Mass & VIP tables: 150 VIP and 300 Mass
  • What are they doing on the promotional front for Galaxy Macau?
    • They have been working their marketing program with Banyan Tree and Okura for a year now 
    • Working with travel executives in all the main Chinese cities
    • Visiting travel agencies throughout agency as well
    • Engaged in digital marketing through social media and through their website
    • Program of taxi cabs, buses, and MTR station advertising in HK (first of its kind that MTR has done - they have the exclusive right to advertise inside the station)
    • Have over 70 shuttle buses that will be operating in Macau 
  • They are moving some of the tables from Starworld to Galaxy Macau