Macau casino operator Galaxy Entertainment Group (GEG) boosted its 2016 profits by more than half despite only modest gains in gaming revenue.
Figures released Tuesday show GEG’s full-year revenue rising 4% to HKD 52.8b (US $6.8b) while earnings rose 18% to HKD 10.3b and net profit shot up 51% to HKD 6.3b ($811.6m). GEG chairman Lui Che Woo called the results “very credible and solid” given the well-publicized challenges of the overall Macau casino market.
Lui said GEG had worked hard to keep costs to a minimum without impacting customer service standards or interfering with efforts to expand its mass market business. GEG enjoyed “virtually 100%” occupancy at its hotels and non-gaming revenue gained 18% year-on-year to HKD 3.2b in 2016.
GEG’s overall gaming revenue was up only 2% to HKD 49.5b, with mass market revenue improving 19% to HKD 21b and VIP revenue falling 8% to HKD 26.5b. Reflecting the overall Macau market’s Q4 performance, GEG’s fortunes improved in the last three months of 2016, as VIP revenue gained 3% to HKD 7.2b.