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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. is an investment holding company, which 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 2019 HKDUSD
Revenue29,414.70M3,754.17M
Gross Profit16,889.95M2,155.65M
Operating income11,767.69M1,501.90M
Income before tax12,751.66M1,627.48M
Net income13,041.54M1,664.48M
EBITDA15,224.29M1,943.06M
Diluted EPS3.000.38
Dividends Per Share00
Total Assets95,696.17M12,281.65M
Total liabilities21,541.29M2,764.61M
Total equity73,587.39M9,444.20M
Operating cash flow21,051.20M2,686.74M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 32,757.60M 34,137.96M 26,640.53M 29,591.37M 29,414.70M
Gross Profit 9,323.54M 11,601.33M 14,750.82M 17,381.67M 16,889.95M
Operating income 4,236.44M 6,110.15M 9,850.47M 12,218.71M 11,767.69M
Income before tax 4,147.80M 6,275.80M 10,628.37M 13,613.76M 12,751.66M
Net income 4,161.05M 6,283.39M 10,504.36M 13,507.38M 13,041.54M
EBITDA 7,240.88M 9,593.50M 13,110.06M 15,444.47M 15,224.29M
Diluted EPS 0.96 1.46 2.43 3.11 3.00
Dividends Per Share 0 0 0 0 0
Total Assets 55,354.34M 66,261.03M 83,814.68M 87,383.83M 95,696.17M
Total liabilities 13,641.00M 19,398.01M 27,799.08M 24,552.63M 21,541.29M
Total equity 41,101.43M 46,345.35M 55,481.69M 62,280.25M 73,587.39M
Operating cash flow 6,868.53M 12,863.55M 19,144.37M 15,003.83M 21,051.20M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 4,225.38M 4,397.82M 3,418.60M 3,775.59M 3,754.17M
Gross Profit 1,202.63M 1,494.54M 1,892.87M 2,217.74M 2,155.65M
Operating income 546.45M 787.14M 1,264.04M 1,558.99M 1,501.90M
Income before tax 535.02M 808.48M 1,363.86M 1,736.99M 1,627.48M
Net income 536.73M 809.45M 1,347.95M 1,723.42M 1,664.48M
EBITDA 933.99M 1,235.88M 1,682.32M 1,970.57M 1,943.06M
Diluted EPS 0.12 0.18 0.31 0.39 0.38
Dividends Per Share 0 0 0 0 0
Total Assets 7,142.35M 8,546.33M 10,721.69M 11,161.05M 12,281.65M
Total liabilities 1,760.09M 2,501.95M 3,556.09M 3,135.97M 2,764.61M
Total equity 5,303.30M 5,977.61M 7,097.29M 7,954.71M 9,444.20M
Operating cash flow 885.96M 1,657.14M 2,456.66M 1,914.35M 2,686.74M

Valuation Measures

Dec 2019
PER19.06
ROA14.24%
ROE19.19%
Operating margin40.00%
Profit margin44.33%

Key executives

  • Group Chief Financial Officer: Robert Charles Drake
  • Director-Information Systems & Technology: James Houghton
  • Group Director-Human Resources & Administration: Wai Ling Lui
  • Executive Director & MD-Construction Materials: Ying Keung Chee
  • Director-Strategic Planning: Chi Kay To

Shareholders

  • LUI FAMILY /GALAXY ENTERTAINMENT/ (31.4%)
  • LUI YIU TUNG (10.3%)
  • Lui Che Woo Foundation Ltd. (6.8%)
  • Capital Research & Management Co. (World Investors) (4.4%)
  • Capital Research & Management Co. (Global Investors) (2.0%)
  • Lui Che Woo Prize Ltd. (1.5%)
  • The Vanguard Group, Inc. (1.4%)
  • LUI CHE WOO (0.9%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.8%)
  • BlackRock Fund Advisors (0.8%)

Contact Details

Related Companies

  • New Galaxy Entertainment Co. Ltd.
  • Geg Investment Holdings Monaco Ltd.
  • K. Wah Construction Materials (Hong Kong) Ltd.
  • AHK Aggregates Ltd.
  • Grand Waldo & City Clubs
  • Galaxy Hotel Management Co. Ltd.
  • K. Wah Asphalt Ltd.

Competitors

  • Wynn Macau Ltd.
  • Wynn Resorts, Limited
  • Studio City International Holdings Ltd. Sponsored ADR Class A
  • Melco Resorts and Entertainment Ltd Shs Sponsored American Deposit Receipt Repr 3 Shs
  • Las Vegas Sands Corp.
  • Sands China Ltd.
Last Updated on 4 Aug, 2020

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