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
- 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
