Gaming revenues surge in Macau through H1
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Galaxy Entertainment Group Limited (CEG) has reported strong financial growth this year, driven by strong growth in Macau’s mass market gaming market.
Group revenues increased 25% y-o-y to US$38.4 billion in the first half of 2014, while adjusted EBITDA soared 26% to US$7.3 billion. Group earnings were dominated by its flagship casino, Galaxy Macau, which recorded half year revenue growth of 38% to US$25 billion, while adjusted EBITDA surged 35% to US$5.4 billion.
The Macau gaming market saw healthy growth in the half year as total gaming revenue increased by 13% y-o-y to US$187.5 billion. However, market growth cooled through the second quarter due to a softer economy in China and the distraction of the 2014 FIFA World Cup. Arrivals to Macau continued to rise however, up 8% to 15.3 million with arrivals from Mainland China now account for 67% of total visitors.
The holiday and gaming destination is seeing strong growth in the mass market in particular, contributing US$63.9 billion in the first half gaming revenues, which represents 36% y-o-y growth. This structural shift will be reinforced by major infrastructure improvement works such as the Guangzhou-Zhuhai Intercity Mass Rapid Transit and the Hong Kong-Zhuhai-Macau Bridge coming on stream in the near future. Meanwhile, the VIP segment accounted for 62% of total gaming revenue, registering y-o-y growth of 3% to US$116.2 billion.
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