• Group Rev of $12.3 billion, up 5% QoQ but down 29% YoY

  • Adj EBITDA of $2.1 billion, UP 13% QoQ but down 36% YoY

  • Galaxy Macau

    • Adjusted EBITDA of $1.7 billion, down 30% YoY, up 19% QoQ
    • Played unlucky in Q3 which reduced Adjusted EBITDA by approximately $117 million
    • Hotel occupancy across the five hotels was 99%, Non-gaming revenue of $742 million, up 92% YoY and 60% QoQ
    • VIP Win % = 3.6% in Q3 2015 vs 3.2% in Q3 2014
    • Mass Hold % = 43% in Q3 2015 vs 44.9% in Q3 2014
  • StarWorld
    • Adjusted EBITDA of HK$514 million, down 43% YoY, up 1% QoQ
    • Played unlucky in Q3 which reduced Adjusted EBITDA by approximately HK$11 million
    • Hotel occupancy was 99%
    • VIP Win % = 2.7% in Q3 2015 vs 2.9% in Q3 2014
    • Mass Hold % = 40.3% in Q3 2015 vs 41.4% in Q3 2014
  • Broadway
    • Virtually broke even with Adjusted EBITDA of HK$(1) million 
    • Played unlucky in Q3 which reduced Adjusted EBITDA by approximately HK$3 million 
    • Hotel occupancy was 99%
    • Mass Hold % = 25.1% in Q3 2015 vs 20.7% in Q2 2015
  • Development cost savings of HK$400-HK$500 for Phase 2

  • Issuing a special dividend of HK$0.14 per share 

  • Mass and non gaming - growing relative to VIP, despite still being the market leader in VIP

  • Will be realizing a HK$800 million cost savings program, and so far is on pace to deliver this initiative.

  • Cost savings program was previously underway, but are just now quantifying the program. 

  • Hotel OCC continues to grow. Up to 99% from 96% over the same period last year

  • Bad luck hurt virtually all properties, luck on mass side was slightly better than the prior year period

  • Starworld Mass business growing very nicely 

  • Phase 2 Update - Invested a total of $15.7 billion thus far on the project 

  • Finished their strategic investment in Monaco's SBM (casino monopoly in Monte Carlo)

  • They remain cautiously optimistic regarding the future of Macau

  • Cite that a growing consumer in China will aid the growth of Macau

  • Anticipate to re-capture lost players when growth resumes 

  • Flexible balance sheet is a huge positive going forward and will allow Galaxy additional opportunities 


  • Cost savings? Where will the costs be taking out?
    • HK$800 million in savings and they have done about 35% of that thus far. Should be a 12-18 month program. 
    • Labor, marketing, and procurement will take up the largest share of the savings
    • Shuffling around their human resources more effectively 
    • Looking into strategic marketing initiatives - wouldn't specify 
  • China/Macau Government comments
    • Confident in the government's ability to support the industry and economy. See their willingness to work with the operators.  Recent steps are a real positive
  • Constantly looking to re-allocate their tables to Mass and premium Mass
    • Revenue mix is really beginning to shift from VIP to mass, non gaming and slots. Represents roughly 50% of revenue now 
    • Cited strong Golden Week as a positive sign for the future.
    • Opening of Horizon their premium mass offering has been very successful and will look to continue to use that as a future driver
  • Table allocations. Awarded another 100 tables?
    • They are in further talks with the government, but haven't received confirmation for the additional tables 
  • Tables are reportedly under utilized, how will they help?
    • Would offer flexibility to allocate more tables to effective areas of the casino. 
    • It is also another sign of support from the government
    • Will apply the tables to their highest and best use, (likely to premium mass segment)
  • Couldn't comment on Phase 2's specific contribution to EBITDA but said it was very accretive
  • Non Gaming was so strong due to Phase 2 and they are very pleased with this segment. 
  • Non Gaming Margin = Very high (wouldn't give exact numbers)
  • SSS growth looking strong in their retail segment. 
  • 60k foot traffic per day for phase 2 was the whisper number, is that still holding?
    • Still north of 60k per day, but they are also attracting better customers and Horizon will continue to drive that number higher
  • Phase 3 or 4 changes to CAPEX?
    • Studying diligently, focusing on consumer and forecasting where the consumer will be. 
    • CAPEX allocation is subject to change but for now, they haven't made changes
  • Retail area not open until end of july, should we see more of an uptick since they weren't open for the full Q?
    • Yes, expect to open more stores which will add to the non gaming number. 
    • They are very bullish on the potential of their retail segment

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