Galaxy beats income estimates to deliver over $300M first-half profit

Macau casino operator Galaxy Entertainment Group (GEG) continues its winning streak in the first half of 2016.

In a filing with the Hong Kong Stock Exchange, GEG reported that its first-half net profit reached HK$2.6 billion ($335.31 million), a 26 percent increase compared to the same period last year. Group revenue also rose by 1 percent, but a 15 percent decline in revenue from VIP visitors has dulled gains from mass market visitors.

Total revenue in the first six months reached HK$25.5 billion, a small increase compared to the HK$25.4 billion year-on-year.

GEG’s other properties, StarWorld Macau continues to suffer from its ongoing transition to a more mass-centric business, as first-half revenue dropped 22 percent year-on-year to HK$5.6 billion. Broadway Macau, on the other hand, played lucky in second quarter, which increased adjusted EBITDA by about HK$2 million. GEG said hotel occupancy at Broadway Macau, which has no VIP facilities, was “virtually 100 percent.”