Galaxy beat our 2Q EBITDA estimate and we were high on the Street.  High mass hold and controlled corporate costs were the driving factors. 



"We are very pleased to report improving financial results across the business and that Phase 2 of Galaxy Macau remains on schedule. The Group also expanded its existing Cotai landbank with the strategic purchase of the Grand Waldo Complex.  We also strengthened our balance sheet by prepaying a significant portion of our bank borrowings. I am particularly delighted that the half year culminated in the Group being included as a constituent of the Hang Seng Index. Looking into the future, Macau's prospects for the remainder of 2013 and beyond continue to be bright. We believe that our development pipeline for Phases 2, 3 and 4 plus the Grand Waldo Complex on Cotai position us well for continued growth." 


- Dr. Lui Che-woo, Chairman of GEG 



  • Galaxy Macau:  opened new premium mass Pavilion club, will open new VIP room in late Q3
  • Starworld:  all-time record in mass; opened new premium mass room, made some shifting in VIP rooms 


Q & A

  • Sands Cotai Central competition:  all operators have benefited from SCC opening, including Galaxy Macau
  • Galaxy Macau revenue growth:  visitation has grown especially in mass segment
  • Galaxy Macau Phase 2 capex:  YTD over a billion dollars; have spent $2.8 BN of $19.6BN budget; significant ramp-up in capital outflow at the end of this year and 2014.
  • Henquin Island:  Galaxy looking at it
  • 2Q Hold adjusted EBITDA:  refused to give it given 'no standardized definition'; wants analysts to focus on the volume growth
  • GM Phase 3/4:  combined capex HK$60-80BN -start the project out with the arena and construction could start at end of year/ early 2014.
  • Net cash $5 billion before Waldo acquisition
  • Took Waldo tables and employed them at other properties
  • Table mix:  1/3 VIP, 2/3 MASS; 3Q 2013 will have a little more VIP tables
  • GM Phase 2 table count:  working closely with govt 
  • GM Phase 3/4: some gaming
  • Starworld:  VIP RC - tables yielding better, redesigned new VIP room, more rewards, 16 VIP operators down from 17; Q3TD is very positive
  • Non-gaming revenue decline:  accounting adjustment - reclassification of travel-related revenue; Starworld disruption at L16
  • No fees with prepayment of loan

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more

Jim Rickards Answers the Hedgeye 21

Bestselling author Jim Rickards says if he could be any animal he’d be a T-Rex. He also loves bonds and hates equities. Check out all of his answers to the Hedgeye 21.

read more

Amazon's New 'Big Idea': Ignore It At Your Own Peril

"We all see another ‘big idea’ out of Amazon (or the press making one up) just about every day," writes Retail Sector Head Brian McGough. "But whatever you do, DON’T ignore this one!"

read more