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"We are confident that GEG will continue to deliver results. The accelerated construction of Galaxy Macau Phase 2 was announced in April 2012. Based on our 'World Class, Asian Heart' philosophy, we believe it will serve as a major catalyst for growth for GEG and Macau, attracting customers from across the region and the world."
- Dr. Lui Che-woo, Chairman of GEG 


  • Galaxy Macau 2Q 2012 results includes full quarter, compared to 47 days in 2Q 2011
  • $100MM positive EBITDA impact from high VIP hold of 3.4% at Galaxy Macau
  • $100MM positive EBITDA impact from high VIP hold of 3.1% at StarWorld
  • Will not issue equity for Phase II GM--expected to be the next major project in Macau


  • Recent uptick in Galaxy's customer activity in August: increased foot traffic and higher demand for hotel rooms
  • Believes VIP market will pick up
  • Mass segment will continue to grow at 'high 20s, low 30s'
  • No dividend plans right now
  • Other operating expenses up significantly--no comment
  • Residual capex at Phase I of Galaxy Macau is $2BN to be spent over the next 18-months to 2 years
  • Capex for Phase II of GM will be mainly spent in 2014 and 2016
  • Will look at other opportunities worldwide but right now concerned on completing Phase I of GM and efficient operation of StarWorld
  • % of casino customers at hotel: Galaxy Macau has one of the higher casino mixes in Macau
  • They are looking at new amenities at Galaxy Macau for 2H 2012 but did not disclose any details


  • Phase 2 Galaxy Macau (mid-2015)
  • Q2 Group adjusted EBITDA: HK$2.6BN
    • StarWorld Q2 adjusted EBITDA: HK$906MM
    • Galaxy World Q2 adjusted EBITDA: HK$1.6BN
  • Cash at end of 2Q: HK$11BN (HK$1.9 BN restricted cash), up from HK$7BN at end of 2011
  • 2Q Debt: HK$11.090BN
  • Gearing ratio: 7%
  • 2Q Galaxy Macau
    • VIP turnover: HK$186.4BN; VIP win: HK$6.3BN; VIP hold: 3.4%
    • Mass drop: HK$6.0BN; Mass win: HK$1.7BN; Mass hold: 28.4%
    • Slot handle: HK$4.4BN; Slot win: HK$271MM; Slot hold: 6.2%
  • 2Q StarWorld
    • VIP turnover: HK$163BN; VIP win: HK$5.1BN; VIP hold: 3.1%
    • Mass drop: HK$2.37BN; Mass win: HK$0.55BN; Mass hold: 22.5%
    • Slot handle: HK$0.84BN; Slot win: HK$60MM; Slot hold: 7.2%
  • City Clubs 1H EBITDA:  $82MM
  • Construction Materials 1H EBITDA: $228MM