Having announced a 51% increase in first quarter earnings over the same period last year, Galaxy Entertainment Group (GEG) today declared that StarWorld continues to be one of Macau’s best performing properties, delivering a record quarterly EBITDA up 81% from 2009. The company also reported an all time record VIP volume of HK$102 billion (US$13 billion) for the quarter.

The first quarter of the year is historically strong due to the seasonal impact of Chinese New Year but GEG says that surprisingly the second quarter has posted a record performance for April and the outlook for the full year remains promising. The company attributes StarWorld’s success to the quality of the property, its established reputation as a leader in the VIP market and GEG’s famous “Asian Heart” service.

The impressive EBITDA performance was primarily driven by increased gaming volumes, with the introduction of two new VIP rooms, very tight operational and cost control and broadly normalised win rates. Occupancy at StarWorld Hotel was again consistently higher than the overall market, averaging a very healthy 94%. The hotel was again recognised as a leading luxury casino hotel in Macau, receiving a number of additional awards.

The Group’s City Clubs casinos in Macau continue to make a valuable contribution. EBITDA for the quarter was HK$30 million (US$3.8 million). The construction materials division remains a solid performer and has been boosted by improving market conditions and the Mainland Chinese Government’s stimulus packages. Galaxy Macau, which will be the largest entertainment and resort development to launch in Macau in the next 12 months, is scheduled to open in early 2011. It has been conceived with “World Class, Asian Heart” and will offer the most diverse range of Asian themed entertainment and food in Macau.

GEG believes it is in an excellent position to capitalise on the growth potential of the world’s largest gaming market, and that by early 2011 it will be the only operator with flagship properties in both the heart of Macau’s Peninsula and the emerging and hugely important area of Cotai. The Group will have a unique opportunity to leverage the expected growth in leisure and recreation as Macau becomes a more diversified destination for visitors from across Asia. (E-06.02.10)

© Copyright 2010 CasinoCompendium



>>> return to archives
>>> return to frontpage