CONF CALL
- 1Q 2015 had toughest comp
- Seeing signs of gradual stabilization in the market but need more time to verify that
- Galaxy Macau: Mass revenue grew 3% sequentially which is a good sign for Phase 2
- StarWorld: have reallocated tables to better use
- 1Q capex: total $2.1 billion ; $340m (Broadway capex); completed Grand Waldo acquisition in 1Q. Have hired 6,200 workers (have doubled staff).
- Increase in Debt to $2bn: due solely to a treasury management exercise where interest income on cash holdings exceeds corresponding borrowing cost
Q & A
- Possibility of full smoking ban: GEG supports what Macau govt has done with smoking control act. Imposing additional restrictions through full smoking on a tough Macau environment would hurt.
- Conflicting reports from media on visitation cap
- Luck-adjusted EBITDA: $20m of bad luck in 1Q (Galaxy Macau: played unlucky in higher margin premium direct business -$65m; Starworld: benefited $45m)
- Construction materials: 4Q is traditionally strongest in year. 1Q weakest. Mainland China lagged lagged behind but HK did well.
- Sees volume stabilization particularly in the mass segment (premium and core)
- Pre-opening spend in 1Q: $185m; $400-425m YTD. Will hit that $19.6 bn target.
- Lower hotel occupancy QoQ: optimal yield doesn't necessarily mean 100% occupancy but April occupancy is running at full occupancy.
- Chief Executive address: positive on growth of Macau