Galaxy Entertainment Group Reports Selected Unaudited Q1 2013 Financial Data

 Galaxy Entertainment Group Reports Selected Unaudited Q1 2013 Financial Data

RECORD GROUP ADJUSTED EBITDA OF $2.8 BILLION, UP 29% YEAR-ON-YEAR

GALAXY MACAU™ PHASE 2 WELL POSITIONED TO COMPLETE AS MACAU'S NEXT MAJOR
PROJECT BY MID-2015

PR Newswire

HONG KONG, May 14, 2013



HONG KONG, May 14,2013 /PRNewswire-FirstCall/ -- Galaxy Entertainment Group
Limited ("GEG" or the "Group") (HKEx stock code: 27) today reported selected
unaudited 2013 first quarter financial data for the three months ending 31
March 2013. All figures are in Hong Kong dollars unless otherwise stated.

FIRST QUARTER 2013 HIGHLIGHTS

GEG: Record High Earnings

  oRevenue of $15.2 billion, up 15% year-on-year and 6% sequentially
  oAdjusted EBITDA of $2.8 billion, up 29% year-on-year and 10% sequentially
  oLatest twelve months Group Adjusted EBITDA increased year-on-year by 46%
    to $10.5 billion

Galaxy Macau™: 7th Consecutive Quarter of Adjusted EBITDA Growth

  oRevenue of $8.9 billion, up 23% year-on-year
  oAdjusted EBITDA of $1.9 billion, up 48% year-on-year and 3%
    quarter-on-quarter
  oMass win of $2.3 billion, up 42% year-on-year and 8% sequentially
  oAchieved latest twelve months Return on Investment (ROI*) of 42%
  oStrong hotel occupancy of 95% even with additional new capacity in Cotai

StarWorld: Rebounding Strongly with 2nd Highest Ever Quarter of Adjusted
EBITDA

  oAdjusted EBITDA of $861 million, up 33% on Q4 2012 and 1% year-on-year
  oRecord mass win of $802 million, growing 42% year-on-year and 14%
    sequentially, ahead of the market
  oStrong hotel occupancy of 98%
  oAchieved latest twelve months ROI* of 94%

Development Update: Galaxy Macau™ Phases 2, 3 & 4

  oConstruction of Phase 2 on budget and on schedule to be completed by
    mid-2015
  oPhases 3 & 4 plans well advanced with construction targeted to commence by
    the end of 2013 / early 2014

Balance Sheet: Remains Healthy

  oCash on hand of $16 billion as at 31 March 2013
  oNet cash position of $5.4 billion

Subsequent Events: Strategic Acquisition of the Grand Waldo Complex and GEG
Inclusion in the Hang Seng Index

  oAnnounced $3.25 billion strategic acquisition of the Grand Waldo Complex
    in May 2013
  oOn 10 May 2013, the Hang Seng Indexes Company Limited announced that GEG
    would be included as a constituent to the Hang Seng Index effective on 17
    June 2013

* ROI calculated based on the total Adjusted EBITDA for the latest twelve
months divided by gross book value through 31 March 2013 including allocated
land cost.

Dr. Lui Che-woo, Chairman of GEG said:

"2013 has started well with GEG achieving records in quarterly earnings.
Galaxy Macau™ delivered its 7^th consecutive quarter of Adjusted EBITDA growth
even as new capacity opened in Cotai, and StarWorld rebounded solidly.

Our first quarter results underscore the excellent progress we are making in
optimising every component of Galaxy Macau™ so that it reaches its potential,
and ensuring that new growth initiatives at StarWorld put the property firmly
back on its growth trajectory. We are particularly pleased with the
performance of our mass business at both of our flagship properties which
continues to be the engine of growth.

Looking beyond the short term initiatives at our existing properties, we are
greatly excited by our potential for growth in the medium and longer term.
Phases 2, 3 & 4 of GEG on Cotai will offer fresh and captivating new products
and service experiences that will reinforce Macau's standing in the global
leisure and tourism community. We are confident that they will prove highly
popular with the expected influx of new visitors to Macau as major transport
and infrastructure works transform access to and within Macau.

In addition, we are pleased that we will further extend our casino permitted
landbank with the announcement of the strategic acquisition of the Grand Waldo
Complex. We believe this will benefit the Group's future development and
enhance value for our shareholders.

Finally, I am particularly pleased that the Hang Seng Indexes Company Limited
announced that GEG will be included as a constituent to the Hang Seng Index
commencing on 17 June 2013."

Group Financial Results

The Group registered a strong performance in the first quarter of 2013,
achieving record Adjusted EBITDA of $2.8 billion, an increase of 29%
year-on-year and 10% quarter-on-quarter. As of 31 March 2013, the latest
twelve months Group Adjusted EBITDA was up 46% year-on-year to $10.5 billion.
Group revenue in the period reached $15.2 billion, an increase of 15%
year-on-year and 6% quarter-on-quarter.

These results reflect increased operational efficiencies across the business,
the continuously improving performance of Galaxy Macau™ and record mass win at
both of our flagship properties. The VIP performance at both properties was
solid.

(Photo: http://www.prnasia.com/sa/2013/05/15/20130515101247199806.html)

As of 31 March 2013, cash on hand stood at $16 billion, including restricted
cash of $2.1 billion. Net cash at the period end was $5.4 billion.

City Clubs and the Construction Materials Division made solid contributions.

Galaxy Macau™

Galaxy Macau™, GEG's game changing integrated resort in Cotai, generated
revenue of $8.9 billion in the first quarter, an increase of 23%
year-on-year. Adjusted EBITDA increased for the 7^th consecutive quarter to
$1.9 billion, an increase of 3% quarter-on-quarter and 48% year-on-year.
Latest twelve months ROI climbed to 42%.

Adjusted EBITDA margin for the period improved to 22% (Q1 2012: 18%)
calculated under HK GAAP, or 30% under US GAAP (Q1 2012: 26%).

Our growth rates are largely attributable to a stellar performance in the mass
segment, with win growing by 42% year-on-year (versus market growth of 30%)
and by 8% quarter-on-quarter (versus market growth of 6%).

VIP Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Turnover     $171,393 $167,590 $168,014 -2%  0.3%
Net Win      $5,120   $5,956   $5,910   15%  -1%
Win %        3.0%     3.6%     3.5%
Mass Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Table Drop   $5,871   $6,497   $6,694   14%  3%
Net Win      $1,593   $2,096   $2,261   42%  8%
Hold %       27.1%    32.3%    33.8%
Electronic Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Slots Handle $4,346   $5,484   $6,187   42%  13%
Net Win      $298     $328     $359     20%  9%
Hold %       6.9%     6.0%     5.8%

In non-gaming, the property's compelling range of retail, dining and
accommodation options resulted in a 17% year-on-year increase in revenue to
$383 million. Hotel occupancy for the quarter was an impressive 95%.

Development Update of Galaxy Macau™ Phases 2, 3 & 4

Construction of the 450,000 square metre Phase 2 of Galaxy Macau™, announced
in April last year, continues apace with target completion expected by
mid-2015. Expected to open as the next major project in Macau, together with
Phase 1 it will boast the largest pan Asian cuisine selection under one roof;
nearly 200 luxury retail outlets; meeting, events and banquet capacity for
3,000 guests; and, 3,600 luxury five star hotel rooms, suites and villas
catering for a wide range of tastes. Management is confident that it will be a
spectacular addition to Phase 1 and the Macau market.

Plans for the final two phases of GEG's landbank in Cotai are also nearing
completion. Doubling the footprint of the first two phases, Phases 3 & 4 will
significantly diversify GEG's product and service offering to include a
multitude of new entertainment elements, including a state of the art
multi-purpose 10,000 seat arena for world class entertainment and sporting
events and a 50,000 square metre convention centre. GEG believes that the
ambitious $50-$60 billion project, predominantly targeting premium mass
guests, will set a new benchmark for the global leisure and tourism industry,
and prove pivotal in GEG securing a strong share of the expected influx of new
visitors to Macau. Construction is targeted to commence by the end of 2013 or
early 2014.

StarWorld Hotel & Casino

StarWorld, the Group's flagship property on the Macau peninsula, rebounded
strongly in the first quarter, recording Adjusted EBITDA of $861 million, a
33% increase on the previous quarter and its second best quarter ever. Revenue
increased by 5% to $5.8 billion.

Our improved results were a result of a number of factors including
outperforming the marketin the mass segment, where win climbed to an all-time
high of $802 million, an increase of 42% year-on-year and 14%
quarter-on-quarter. In addition, there were positive signs of increased demand
in the VIP market with volumes at the highest level since Q2 2012. A
quarter-on-quarter VIP volume increase of 2%, coupled with a higher VIP win
rate of 3.2%, led to 17% quarter-on-quarter growth in net win to $4.8
billion. A number of new initiatives to enhance the performance of StarWorld
are already benefiting the business.

VIP Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Turnover     $176,117 $146,915 $149,440 -15% 2%
Net Win      $4,754   $4,098   $4,805   1%   17%
Win %        2.7%     2.8%     3.2%
Mass Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Table Drop   $2,392   $2,585   $2,664   11%  3%
Net Win      $564     $706     $802     42%  14%
Hold %       23.2%    26.7%    29.6%
Electronic Gaming
HK$'m        Q1 2012  Q4 2012  Q1 2013  YoY% QoQ%
Slots Handle $927     $901     $898     -3%  -0.3%
Net Win      $62      $66      $64      3%   -3%
Hold %       6.6%     7.3%     7.1%

StarWorld's hotel occupancy was 98% in the quarter. Latest twelve months ROI
was an impressive 94% (Q1 2012: 91%).

City Clubs and Construction Materials Division

During the first quarter, City Clubs generated an Adjusted EBITDA of $46
million, a year-on-year improvement of 7%.

The Construction Materials Division reported an Adjusted EBITDA of $60
million, compared to $83 million in Q1 2012 where the continued softness in
the cement and slag markets in the Mainland was partially offset by healthy
demand in Hong Kong and Macau.

Subsequent Events

Strategic Acquisition of the Grand Waldo Complex

In May 2013, we entered into an agreement to purchase 100% of the properties
of the Grand Waldo Complex for a purchase price of $3,250 million. The
transaction is expected to complete in the third quarter of this year.

Grand Waldo is a casino, hotel & entertainment complex located adjacent to
Galaxy Macau™ and our existing Cotai landbank. We consider this acquisition
to be a strategic investment and it is expected to have strategic effect on
GEG's development at Cotai.

GEG Inclusion as a Constituent to the Hang Seng Index

On 10 May 2013, the Hang Seng Indexes Company Limited announced that GEG would
be included as a constituent to the Hang Seng Index effective on 17 June 2013.

Outlook

The evolution in the Macau gaming market to the higher margin mass segment has
continued in 2013, with GEG successfully tapping into this growing demand as a
result of its 'World Class, Asian Heart' product and service offer, and
improved accessibility through infrastructure initiatives. Alongside this,
there have been positive signs that demand in the VIP segment is regaining
momentum.

GEG remains confident in Macau's prospects for 2013 and beyond, with an
improving economy, further planned wide reaching infrastructure and transport
improvements and a supportive local government, all facilitating growth in
consumer consumption and increased visitation to Macau.

By gradually monetising our casino permitted landbank with the acceleration of
Galaxy Macau™ Phase 2 and advancing with our Phases 3 & 4 development plans,
our well defined short, medium and longer term development strategy is
unlocking the Group's earnings potential and moving us closer to achieving our
vision to be 'globally recognised as Asia's leading gaming and entertainment
corporation' and enhance Macau's position as a world class tourism
destination.

About Galaxy Entertainment Group Limited (HKEx stock code: 27)

Galaxy Entertainment Group Limited ("GEG") is one of Asia's leading gaming and
entertainment corporations. GEG develops and operates hotels, gaming and
integrated resort facilities in Macau. Through its subsidiary Galaxy Casino,
S.A., GEG holds a gaming concession in Macau, the only legal gaming location
in China and the fastest growing gaming market in the world.

The two flagship properties of GEG include Galaxy Macau™, a world class
integrated destination resort opened in May 2011 at Cotai, and StarWorld Hotel
and Casino, an award-winning property opened in 2006 on the Macau peninsula.

In April 2012, GEG announced the development of Galaxy Macau™ Phase 2 that
will nearly double the size of the existing resort to one million square
metres. Upon its completion by mid-2015, Galaxy Macau™ Phase 2 will bring to
Macau some of the most exciting and game-changing entertainment, leisure,
retail and MICE facilities. In December 2012, GEG outlined its concept plans
for Phases 3 & 4 of its Cotai landbank. We expect to commence construction by
the end of 2013 / early 2014 with a targeted phased opening between 2016 and
2018. Predominantly targeting premium mass guests, it will provide an
unparalleled array of resort amenities and GEG expects it to set a new
benchmark for the industry and support the government in developing Macau into
a world centre of tourism and leisure.

Additionally, GEG operates City Clubs Casinos in Macau and a Construction
Materials Division.

For more information, please visit www.galaxyentertainment.com

For Media Enquiries:
Galaxy Entertainment Group
Mr. Peter J. Caveny                Ms. Yoko Ku
Vice President, Investor Relations Assistant Manager, Investor Relations
Tel: +852 3150 1111                Tel: +852 3150 1111
Email: ir@galaxyentertainment.com  Email: ir@galaxyentertainment.com
Ms. Kelrah Pang
Senior Manager, Investor Relations
Tel: +852 3150 1111
Email: ir@galaxyentertainment.com

SOURCE Galaxy Entertainment Group Limited

Website: http://www.galaxyentertainment.com