Galaxy reports record results and announces additional HK $0.8 BN investment in Galaxy Macau.
“Once again GEG outperformed the market, with excellent gaming growth and strong results from all our divisions. StarWorld continues to lead the market, delivering exceptional returns and achieving some of the highest volumes of any casino in Macau. StarWorld also boasts one of the highest hotel occupancy rates in Macau, recording a very healthy 96% in the second quarter of the year. In Cotai, we are entering the final fit-out stages, in preparation for the opening of Galaxy Macau™. In early 2011 we will be unveiling the most innovative and uniquely Asian destination resort in the world. This, the first phase in our Cotai development, represents the culmination of six years of careful and detailed planning. We are hugely excited about the opening of Galaxy Macau™ and are confident that it will transform the Macau market just as it is now transforming the Cotai skyline. As a result of our confidence, we are seizing the opportunity to increase our investment and exploit surging market demand.”
--Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group
- Slightly lower ADR at Starworld's hotel is driven by desire to increase occupancy
- Starworld EBITDA margin: economics of scale and cost structure contributed to higher margins; hold did not impact margins.
- Different mix of profit-sharing rooms from Q1 to Q2 may also have played a factor in higher margins.
- Taking advantage of limited supply coming online in Cotai to expand Galaxy Macau rooms to 1,400 from 900.
- will open 800 rooms in the next 6 months.
- Galaxy Macau scheduled for end of Q1 2011; 2/3 mass tables, 1/3 VIP tables--but mix may change as they move closer to opening.
- HK$5.4 BN project capex invested YTD. Will spend much of the HK$14.9 BN capex budget in 4Q 2010.