CONF CALL
- Special dividend of HK$0.28 on May 22
- Q4: Playing lucky benefited EBITDA by HK$35m
- Galaxy Ph2 opening: on time
- Operating velocity remains unchanged
- Galaxy Macau: Playing lucky benefited EBITDA by HK$40m
- Opened 2 VIP rooms (1 in December 201`4 and 1 in February 2015)
- Starworld: bad luck of $5m
- Galaxy Macau Ph2: invested HK$10.8bn (HK$1.8bn in Q4 2014).
- Q4 2014: $790m total borrowing capacity
Q & A
- Galaxy Ph2:
- Not as much VIP offering as you would expect given there is not much junkets out there
- Cost of running property shouldn't change much per laborer
- Officially submitted table requests yesterday. Govt will be pragmatic about the process. Will be sitting down with govt very soon. Will not talk about table # expectations on the call.
- 5 small VIP operators ceased operations in 2014 at Galaxy
- 1-2% margin impact on employee retention program
- Direct VIP: growing but still very small part of overall VIP business. That segment has done well.
- Labor cost pressures: increasing staff numbers, compensation costs up ~20%. Will continue to offer competitive package to employee and will evaluate pay costs in mid-year.
- Full smoking ban: very serious issue. Working with govt.
- Mainland China not only targeting Macau on corruption issues
- Cannibalization between Starworld and Galaxy Macau: not an issue since one property in Peninsula, one on Cotai.
- Galaxy Ph3/4 opening: 2018 (unchanged from previous commentary)
- Want have some flexibility regarding dividends
