Consumer Services
Galaxy Entertainment Group Ltd.
Company Background
Galaxy Entertainment Group is a major operator of casinos in Macau.
When Macau authorities opened the gaming sector to foreign-affiliated companies in 2002, Galaxy Entertainment was quick to acquire a license. Rather than simply teaming up with Las Vegas-based companies, Galaxy sought to build expertise by running small and midsize casinos. In 2011, it opened the Galaxy Macau, a large resort in Cotai.
With the opening of the Galaxy Macau Phase 2 in May 2015, the resort's total floor area doubled to about 1.1 million sq. meters. Five luxury hotels, including The Ritz-Carlton, Hotel Okura and Banyan Tree, offer some 3,600 rooms. The complex also has a whirlpool and a 3,000-seat theater to attract families.
Plans for another two phases are expected to bring the company's total investment in Macau to about 100 billion Hong Kong dollars.
Chairman Lui Che-woo started out as an importer of building materials from Okinawa to Hong Kong after World War II. He made his fortune in the real estate and hotel businesses.
Galaxy's casino business is led by Deputy Chairman Francis Lui Yiu-tung, the chairman's first son.
Business Summary
Galaxy Entertainment Group Ltd. operates as an investment holding company. The firm engages in the management of casino games and provision of hospitality and related services. It operates through the following segments: Gaming and Entertainment, Construction Materials and Corporate and Treasury Management. The Gaming and Entertainment segment manages gaming facilities and offers hospitality services. The Construction Materials segment includes manufacture and sale of construction materials. The Corporate and Treasury management segment represents corporate level activities including central treasury management and administrative function. The company was founded by Che Woo Lui in 1955 and is headquartered in Hong Kong.
Financial Highlights
| Dec 2022 | HKD | USD |
| Revenue | 8,401.33M | 1,072.90M |
| Gross Profit | -779.31M | -99.52M |
| Operating income | -3,441.57M | -439.50M |
| Income before tax | -3,262.64M | -416.65M |
| Net income | -3,462.58M | -442.19M |
| EBITDA | -1,353.23M | -172.81M |
| Diluted EPS | -0.78 | -0.10 |
| Dividends Per Share | -- | -- |
| Total Assets | 80,961.33M | 10,373.07M |
| Total liabilities | 16,495.96M | 2,113.52M |
| Total equity | 63,913.93M | 8,188.89M |
| Operating cash flow | -- | -- |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 29,591.37M | 29,414.70M | 8,391.10M | 12,952.77M | 8,401.33M |
| Gross Profit | 17,381.67M | 16,889.95M | -2,307.96M | 3,434.42M | -779.31M |
| Operating income | 12,218.71M | 11,767.69M | -5,156.55M | 105.07M | -3,441.57M |
| Income before tax | 13,613.76M | 12,751.66M | -4,215.37M | 1,138.41M | -3,262.64M |
| Net income | 13,507.38M | 13,041.54M | -3,973.07M | 1,326.23M | -3,462.58M |
| EBITDA | 15,444.47M | 15,224.29M | -2,339.81M | 2,369.19M | -1,353.23M |
| Diluted EPS | 3.11 | 3.00 | -0.91 | 0.30 | -0.78 |
| Dividends Per Share | 0 | 0 | 0 | 0 | -- |
| Total Assets | 87,383.83M | 95,696.17M | 92,726.77M | 85,243.42M | 80,961.33M |
| Total liabilities | 24,552.63M | 21,541.29M | 24,689.59M | 16,167.68M | 16,495.96M |
| Total equity | 62,280.25M | 73,587.39M | 67,423.78M | 68,424.67M | 63,913.93M |
| Operating cash flow | 15,003.83M | 21,051.20M | -6,099.11M | -2,247.59M | -- |
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | |
| Revenue | 3,775.59M | 3,754.17M | 1,081.88M | 1,666.41M | 1,072.90M |
| Gross Profit | 2,217.74M | 2,155.65M | -297.57M | 441.84M | -99.52M |
| Operating income | 1,558.99M | 1,501.90M | -664.84M | 13.51M | -439.50M |
| Income before tax | 1,736.99M | 1,627.48M | -543.49M | 146.46M | -416.65M |
| Net income | 1,723.42M | 1,664.48M | -512.25M | 170.62M | -442.19M |
| EBITDA | 1,970.57M | 1,943.06M | -301.67M | 304.80M | -172.81M |
| Diluted EPS | 0.39 | 0.38 | -0.11 | 0.03 | -0.10 |
| Dividends Per Share | 0 | 0 | 0 | 0 | -- |
| Total Assets | 11,161.05M | 12,281.65M | 11,958.80M | 10,933.83M | 10,373.07M |
| Total liabilities | 3,135.97M | 2,764.61M | 3,184.17M | 2,073.76M | 2,113.52M |
| Total equity | 7,954.71M | 9,444.20M | 8,695.52M | 8,776.55M | 8,188.89M |
| Operating cash flow | 1,914.35M | 2,686.74M | -786.37M | -289.15M | -- |
Valuation Measures
| Dec 2022 | |
| PER | -- |
| ROA | -4.16% |
| ROE | -5.23% |
| Operating margin | -40.96% |
| Profit margin | -41.21% |
Key executives
- Group Chief Financial Officer: Robert Charles Drake
- Senior Director-Information Systems & Technology: James Houghton
- Group Director-Human Resources & Administration: Wai Ling Lui
- Chief Operating Officer-Macau: Kevin L. Kelley
- Director-International Premium & Mass Market Dev: Raymond Yin Min
Shareholders
- LUI FAMILY /GALAXY ENTERTAINMENT/ (31.1%)
- LUI YIU TUNG (10.2%)
- Lui Che Woo Foundation Ltd. (6.7%)
- Capital Research & Management Co. (World Investors) (5.3%)
- Capital Research & Management Co. (Global Investors) (3.3%)
- Lui Che Woo Prize Ltd. (1.5%)
- The Vanguard Group, Inc. (1.2%)
- Schroder Investment Management (Hong Kong) Ltd. (1.1%)
- Norges Bank Investment Management (1.1%)
- FIL Investment Management (Hong Kong) Ltd. (1.0%)
Contact Details
- Website:http://www.galaxyentertainment.com
- Address: Wing On Centre, 111 Connaught Road Central, Hong Kong, Hong Kong
- Phone: +852.3150.1111
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- San Fok Va International Import & Export Co., Ltd.
- Premium Hotel Management Ltd.
- Perfect Contract Management Services Ltd.
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- Macau Hengqin Sports & Resort Development Ltd.
- K. Wah (Macao Commercial Offshore) Co., Ltd.
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- GC Security Services Ltd.
- Galaxy Cotai Project Management Ltd.
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- Galaxy Entertainment Aviation Cl2012 Ltd.
- Zhuhai Hengqin GEG Sports Resort Development Co., Ltd.
- Shanghai K. Wah Concrete Co., Ltd.
- Yunnan K. Wah Liangxun Consulting Co., Ltd.
- Jing Gang K. Wah Consultancy (Beijing) Co., Ltd.
Competitors
- Wynn Macau Ltd.
- Studio City International Holdings Ltd. Sponsored ADR Class A
- Melco Resorts & Entertainment Ltd. Sponsored ADR
- Wynn Resorts, Limited
- Las Vegas Sands Corp.
- Sands China Ltd.
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