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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 2021 HKDUSD
Revenue12,952.77M1,666.41M
Gross Profit3,434.42M441.84M
Operating income105.07M13.51M
Income before tax1,138.41M146.46M
Net income1,326.23M170.62M
EBITDA2,369.19M304.80M
Diluted EPS0.300.03
Dividends Per Share00
Total Assets85,243.42M10,933.83M
Total liabilities16,167.68M2,073.76M
Total equity68,424.67M8,776.55M
Operating cash flow-2,247.59M-289.15M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 26,640.53M 29,591.37M 29,414.70M 8,391.10M 12,952.77M
Gross Profit 14,750.82M 17,381.67M 16,889.95M -2,307.96M 3,434.42M
Operating income 9,850.47M 12,218.71M 11,767.69M -5,156.55M 105.07M
Income before tax 10,628.37M 13,613.76M 12,751.66M -4,215.37M 1,138.41M
Net income 10,504.36M 13,507.38M 13,041.54M -3,973.07M 1,326.23M
EBITDA 13,110.06M 15,444.47M 15,224.29M -2,339.81M 2,369.19M
Diluted EPS 2.43 3.11 3.00 -0.91 0.30
Dividends Per Share 0 0 0 0 0
Total Assets 83,814.68M 87,383.83M 95,696.17M 92,726.77M 85,243.42M
Total liabilities 27,799.08M 24,552.63M 21,541.29M 24,689.59M 16,167.68M
Total equity 55,481.69M 62,280.25M 73,587.39M 67,423.78M 68,424.67M
Operating cash flow 19,144.37M 15,003.83M 21,051.20M -6,099.11M -2,247.59M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 3,418.60M 3,775.59M 3,754.17M 1,081.88M 1,666.41M
Gross Profit 1,892.87M 2,217.74M 2,155.65M -297.57M 441.84M
Operating income 1,264.04M 1,558.99M 1,501.90M -664.84M 13.51M
Income before tax 1,363.86M 1,736.99M 1,627.48M -543.49M 146.46M
Net income 1,347.95M 1,723.42M 1,664.48M -512.25M 170.62M
EBITDA 1,682.32M 1,970.57M 1,943.06M -301.67M 304.80M
Diluted EPS 0.31 0.39 0.38 -0.11 0.03
Dividends Per Share 0 0 0 0 0
Total Assets 10,721.69M 11,161.05M 12,281.65M 11,958.80M 10,933.83M
Total liabilities 3,556.09M 3,135.97M 2,764.61M 3,184.17M 2,073.76M
Total equity 7,097.29M 7,954.71M 9,444.20M 8,695.52M 8,776.55M
Operating cash flow 2,456.66M 1,914.35M 2,686.74M -786.37M -289.15M

Valuation Measures

Dec 2021
PER132.58
ROA1.49%
ROE1.95%
Operating margin0.81%
Profit margin10.23%

Key executives

  • Group Chief Financial Officer: Robert Charles Drake
  • 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%)
  • FIL Investment Management (Hong Kong) Ltd. (1.3%)
  • The Vanguard Group, Inc. (1.2%)
  • LUI CHE WOO (0.9%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.9%)

Contact Details

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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.
Last Updated on 30 Jan, 2023

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