Macau resort and casino operator, Galaxy Entertainment Group (GEG), achieved a sharp rise in profits in 2013, driven by its gaming operations.
The company, which operates the Galaxy Macau integrated resort, generated net profits of HK$10.4 billion (US$1.3bn) last year, 41% more than in 2012. This result was driven by a 16% increase in revenues, to HK$66bn – a record high for the group.
“2013 was a success for the group on every metric. Historic highs were achieved in revenue and earnings as all parts of the business performed ahead of last year,” said Dr Lui Che-woo, chairman of GEG.
“We strengthened our liquid balance sheet by reducing borrowings considerably, completed the strategic acquisition of the Grand Waldo Complex, and pressed on with our Cotai development plans that will provide guests with the widest available choice of entertainment, cultural and MICE facilities in Macau.”
Much of the growth in 2013 was driven by the gaming sector. GEG’s total casino revenue increased 16% to HK$65.4bn in 2013 – a staggering 99% of the group’s total revenues. And of this total, 72%, or HK$46.8bn, was driven by the VIP gaming segment. Non-gaming revenues, including shops, hotels and spas, totalled just HK$1.5bn.
GEG is currently constructing the second phase of Galaxy Macau, which is set to open in mid-2015. It will also soon start work on phases three and four of the integrated resort, which will eventually increase GEG’s total footprint on Macau’s Cotai Strip to two million square metres.
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