Galaxy’s half-year profit jumps 81 percent

Galaxy Entertainment Group (GEG) posted an 81 percent rise in net profit for the first half of the year due to the rebound in VIP and mass revenue.

Net profit for the half year reached HK$4.6 billion (US$587.8 million), while revenue increased 12 percent year-on-year to HK$28.5 billion.

The group’s total gaming revenue increased 9 percent, with total mass table games revenue reaching HK$11.4 billion and VIP revenue reaching HK$13.9 billion in 17H1, representing growth of 15 percent and 5 percent respectively.

Total electronic gaming revenue also rose by 12 percent in the half year.

In a Thursday note, analysts from Union Gaming said they expect the company’s VIP performance to continue to improve on a sequential basis, while noting that mass market continues to be the “sweet spot” for the company.

“The levels of mass foot traffic at Galaxy Macau have been exceptional, driven in part by the company’s ongoing efforts to rethink the property from both a gaming and non-gaming perspective (especially F&B),” said Union Gaming.

GEG said good luck in its gaming operations led to an increase in adjusted EBITDA, which reached HK$6.5 billion in the year, up 37 per cent year-on-year.

In its filing, GEG also took the chance to comment on the impact of Typhoons Hato and Pakhar which hit Macau last week.

“We greatly appreciate every single person who has contributed their time and effort to help during such a difficult time. However, I would like to express my sincere condolences to the family and friends of the people who perished and the citizens who sustained injury as a result of the devastating destruction brought by the two typhoons plus so many who have suffered,” wrote GEG chairman Lui Che Woo.

Earlier in the week, GEG announced it would contribute MOP 60 billion, which includes MOP 30 million from the GEG Foundation and MOP 30 million from the Lui family to support the relief efforts for the people of Macau.

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