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  • Infrastructure projects will drive visitation in 2012
  • Sees significant Galaxy Macau margin upside in 2012
  • Still at the beginning of their era in Macau
  • Galaxy Macau premium mass/mass business continues to ramp up
  • Galaxy Macau VIP also ramping up; will take 12-18 months to optimize
  • Reinvesting back into company is better use of funds right now. e.g. 86% ROI at StarWorld 
  • About $100-120MM related to higher than normal hold
  • Remaining capex for Galaxy Macau: $2.4 BN 
  • Galaxy Macau: grind and premium mass segments doing well
  • Galaxy Macau Mass is the main focus
    • Next week will open Pavilion Club; will open new high-limit mass tables
  • $1.2BN cash due to proceeds from RMB bond offering (Balance Sheet: Other Cash Equivalents line)
  • Effective in 2012, interest expense will be reduced due to a change in financing of a City Clubs loan
  • Wages increasing 5-6% in 2012
  • Everyone benefited when Galaxy Macau opened


  • Q4 Group adjusted EBITDA: HK$2.1BN
    • StarWorld Q4 adjusted EBITDA: HK$827MM
    • Galaxy World Q4 adjusted EBITDA: HK$1.2 BN
  • Cash at end of 2011: HK$7.7BN (HK$2 BN restricted cash)
  • 2011 non-recurring items 2011: Galaxy Macau pre-opening expenses: HK$0.8BN; charges from the change in fair value of the derivative under the convertible notes of HK$0.2BN and net loss on buyback of guaranteed notes of HK$0.1BN.
  • 4Q Galaxy Macau
    • VIP turnover: HK$167 BN
    • VIP win: HK$5.5 BN
    • VIP hold: 3.3%
    • Mass drop: HK$5.7 BN
    • Mass win: HK$1.4 BN
    • Mass hold: 24.1%
    • Slot handle: HK$4.3 BN
    • Slot win: HK$269MM
    • Slot hold: 6.3%
  • 4Q StarWorld
    • VIP turnover: HK$175 BN
    • VIP win: HK$5.4 BN
    • VIP hold: 3.1%
    • Mass drop: HK$2.3 BN
    • Mass win: HK$0.5 BN
    • Mass hold: 20.9%
    • Slot handle: HK$1.038 BN
    • Slot win: HK$64 MM
    • Slot hold: 6.1%
  • Debt: HK$11.672 BN