Galaxy Entertainment Group Selected Unaudited Q1 2014 Financial Data

     Galaxy Entertainment Group Selected Unaudited Q1 2014 Financial Data

Record Quarterly Group Adjusted EBITDA of $3.8 Billion, Up 38% Year-On-Year

Galaxy Macau™ Phase 2 Well Advanced, On Budget and On Schedule to Complete by
Mid-2015

PR Newswire

HONG KONG, May 20, 2014

HONG KONG, May 20,2014 /PRNewswire-FirstCall/ --Galaxy Entertainment Group
Limited ("GEG" or the "Group") (HKEx stock code: 27) today reported selected
unaudited 2014 first quarter financial data for the three months ended 31
March 2014.

Q1 2014 HIGHLIGHTS

GEG: Record Quarterly Results

  oRevenue of $20.2 billion, up 33% year-on-year and 7% sequentially
  oAdjusted EBITDA of $3.8 billion, up 38% year-on-year and 8% sequentially
  oLatest twelve months Adjusted EBITDA increased by 30% year-on-year to
    $13.6 billion

Galaxy Macau™: 11^th Consecutive Quarter of Adjusted EBITDA Growth

  oRevenue of $12.8 billion, up 44% year-on-year and 9% sequentially
  oAdjusted EBITDA of $2.8 billion, up 44% year-on-year and 10% sequentially

StarWorld Macau: Best Ever Quarter of Adjusted EBITDA

  oRevenue of $6.8 billion, up 19% year-on-year and 8% sequentially
  oAdjusted EBITDA of $1.1 billion, up 26% year-on-year and 5% sequentially

Development Update: Continue to Advance Strong Pipeline

  oGalaxy Macau™ Phase 2 -- Remains on budget and on schedule to complete by
    mid-2015
  oCotai Phases 3 & 4 -- Finalising plans for a $50 - $60 billion resort with
    construction expected to commence as early as late 2014
  oGrand Waldo Complex -- Plan to unveil plans in mid 2014 and to re-launch
    in early 2015
  oHengqin Island -- Developing concept plans for the 2.7 sq km land parcel

Balance Sheet: Continues to be Healthy and Liquid

  oCash on hand of $11.7 billion as at 31 March 2014
  oVirtually debt free with a net cash position of $11.3 billion

Dividend: Announced Special Dividend

  oAs previously announced a special dividend of $0.70 per share will be paid
    on or about 31 July 2014

Dr. Lui Che Woo, Chairman of GEG said:

"2014 has begun well for the Group and for Macau as a whole. GEG's success is
underpinned by our commitment to provide customers with a truly memorable
experience, by offering the highest quality resort facilities and delivering
'World Class, Asian Heart' service.We believe that this truly differentiates
GEG.

"Both Galaxy Macau™ and StarWorld Macau performed very well during the
quarter. Revenue and earnings at Galaxy Macau™ continued to increase in a
sustainable way. As an established property, StarWorld Macau's year-on-year
growth was especially noteworthy, driven by growing mass gaming revenues.

"Our future remains bright. Construction of Phase 2 of Galaxy Macau™ is on
budget and on schedule to complete by mid-2015, providing our customers with
an ever wider array of quality facilities and services. Construction of Phases
3 and 4 will begin as early as the end of the year, refitting works are
underway at the Grand Waldo Complex and plans for our site on Hengqin Island
are moving forward. We also continue to explore new opportunities to expand
our success beyond Macau. We are confident that our development pipeline will
translate into sustainable future earnings growth and enhance value for our
shareholders.

"In February this year, I was delighted to receive the Outstanding
Contribution Award at the International Gaming Awards in London. This award,
and GEG winning the Casino Operator of the Year Australia/Asia for the third
consecutive year, recognizes the enormous hard work and success of all our
16,000 team members. I would like to take this opportunity, once again, to
thank all the staff for their tireless hard work in pursuit of making GEG
'globally recognized as Asia's leading gaming and entertainment corporation'."

Group Financial Results

The Group posted record quarterly revenue and earnings in the first quarter of
2014. Revenue increased by 33% year-on-year to $20.2 billion, while Adjusted
EBITDA improved 38% year-on-year to $3.8 billion. As of 31 March 2014, the
latest twelve months Adjusted EBITDA climbed 30% to $13.6 billion. Galaxy
Macau™ achieving 44% year-on-year growth in Adjusted EBITDA and StarWorld
Macau delivering Adjusted EBITDA up 26% year-on-year, were the key factors in
driving in Group earnings.

A key contributing factor in the Group's earnings growth was the strong
performance in both the VIP and the mass segment. The Group's total gaming
revenue on a management basis[1], in Q1 2014 grew 33% year-on-year to $20.2
billion as total mass table revenue increased 37% year-on-year to $5.1 billion
and total VIP revenue grew 32% year-on-year to $14.6 billion.

As of 31 March 2014, cash on hand stood at $11.7 billion, including restricted
cash of $0.4 billion. The Group is virtually debt free and reported a net cash
position of $11.3 billion at the period end.

(Photo: http://photos.prnasia.com/prnh/20140520/8521402875-a)

Galaxy Macau™

In Q1 2014, Galaxy Macau™ reported its 11^th consecutive quarter of Adjusted
EBITDA growth, up 44% year-on-year and 10% sequentially, to $2.8 billion.
Revenue of $12.8 billion, represented an increase of 44% year-on-year and 9%
sequentially.

Both mass and VIP net win were up by 47% to $3.3 billion and $8.7 billion
respectively on a year-on-year basis in the first quarter. Non-gaming revenue
in the quarter remained broadly in line with the same period last year, but
grew 7% quarter-on-quarter to $375 million. Hotel occupancy at Galaxy Macau™
which encompasses three five star hotels was 98%. Adjusted EBITDA margin for
the period was 22% (Q1 2013: 22%) calculated under HKFRS, or 31% under US GAAP
(Q1 2013: 30%). The property generated a latest twelve months ROI[2] of 56%.

VIP Gaming
HK$'m        Q1 2013  Q4 2013 Q1 2014 YoY% QoQ%
Turnover     168,014  236,793  252,834  50%   7%
Net Win      5,910    8,143    8,697    47%   7%
Win %        3.5%     3.4%     3.4%
Mass Gaming
HK$'m        Q12013  Q4 2013  Q12014  YoY% QoQ%
Table Drop   6,694    7,345    7,368    10%   0.3%
Net Win      2,261    2,932    3,331    47%   14%
Hold %       33.8%    39.9%    45.2%
Electronic Gaming
HK$'m        Q1 2013 Q4 2013 Q1 2014 YoY% QoQ%
Slots Handle 6,187    7,708    8,918    44%   16%
Net Win      359      371      412      15%   11%
Hold %       5.8%     4.8%     4.6%

StarWorld Macau

StarWorld Macau achieved its highest ever quarterly revenue of $6.8 billion,
an increase of 19% year-on-year and 8% sequentially; and record quarterly
Adjusted EBITDA of $1.1 billion, an increase of 26% year-on-year and 5%
sequentially. These results were driven by a healthy 43% year-on-year increase
in mass revenue to $1.1 billion. StarWorld Macau also delivered a strong
performance in VIP, with revenue up 16% year-on-year and 12% sequentially to
$5.6 billion. Hotel occupancy continued to be near full capacity at 98%.
Adjusted EBITDA margin under HKFRS and US GAAP remained broadly consistent
with the same period last year at 16% and 26%, respectively. StarWorld Macau
reported a latest twelve months ROI[3] of 111%.

VIP Gaming
HK$'m        Q1 2013 Q4 2013 Q1 2014 YoY% QoQ%
Turnover     149,440 181,548 180,213 21%  -1%
Net Win      4,805   4,964   5,556   16%  12%
Win %        3.2%    2.7%    3.1%
Mass Gaming
HK$'m        Q1 2013 Q4 2013 Q1 2014 YoY% QoQ%
Table Drop   2,664   2,935   2,934   10%  -0.03%
Net Win      802     1,193   1,147   43%  -4%
Hold %       29.6%   40.2%   38.6%
Electronic Gaming
HK$'m        Q1 2013 Q4 2013 Q1 2014 YoY% QoQ%
Slots Handle 898     781     997     11%  28%
Net Win      64      53      52      -19% -2%
Hold %       7.1%    6.8%    5.2%

City Clubs and Construction Materials Division

City Clubs' Adjusted EBITDA in the first quarter was $48 million, up 4%
year-on-year.

The  Construction Materials Division delivered a 22% year-on-year increase in
Adjusted EBITDA to $73 million.

Selected Awards in 2014

                Award                                             Organization
                BestManagedCompaniesinAsia2014--            Euromoney Magazine
GEG             Gaming
                Casino Operator of the Year Australia /           InternationalGamingAwards
                Asia
                Top 10 Resort Hotels of China                     China Hotel Starlight Awards
Galaxy Macau™   Hurun Report Best of the Best Awards -- Luxury    Hurun Report
                Hotel in Macau Star Performer
StarWorldMacau BestServiceHotel Golden Horse Award of China Hotel
                Top 10 Glamorous Hotels of China                  China Hotel Starlight Awards

Development Update

Phases 2, 3 & 4

Building on the success of Phase 1, GEG is progressing well with its
construction of Phase 2 of Galaxy Macau™. Set to almost double the footprint
of the existing property, and due to complete on budget and on schedule by
mid-2015 as Macau's next major project.

Cotai Phases 3 & 4 design plans are in the final stages and we expect to
commence construction as early as late 2014 with an investment of $50-$60
billion.

Grand Waldo Complex

Refitting works are well underway at the Grand Waldo Complex. We anticipate
unveiling our plans in mid 2014 and re-launching the property in early 2015.
It is strategically located adjacent to Galaxy Macau™ and will be
complementary to our Cotai development.

Hengqin Island

GEG continues to develop the concept plans for the 2.7 square kilometre land
parcel in Hengqin Island. With beautiful natural landscape including
approximately 2.5 kilometres of waterfront coastline, we plan to invest RMB10
billion to build a world class destination resort, which will complement GEG's
business in Macau, significantly differentiate us from our competitors and
play a key role in supporting Macau to become a world centre of tourism and
leisure.

Outlook

As Macau continues to evolve and cater to the mass market, it attracts a
broader customer group. Understanding the changing tastes and preferences of
these customers is extremely important in such a dynamic market, and GEG has
tailored its offer at both flagship properties to strengthen their appeal and
maximise returns. A key component in the Group's success is its 'World Class,
Asian Heart' product and service philosophy.

Phase 2 of Galaxy Macau™ will see a continuation of this tailoring and
significant diversification of the Group's offering, as will Phases 3 and 4,
together with the re-launch of the Grand Waldo Complex and the development in
Hengqin Island, strategically positions GEG to capture future opportunities.
Our strong development pipeline is set to complete in parallel alongside major
infrastructure improvements. We are also actively exploring new opportunities
to expand into overseas markets and enhance value for our shareholders.

Notwithstanding the recent press reports and associated share price
volatility, we believe that Macau's prospects in the short, medium and
long-term continue to be very bright, and GEG looks to its future with
confidence. GEG's development pipeline, against a backdrop of continuing
economic growth in Asia, strategically positions the Group to create value for
many years to come, and support Macau's efforts to diversify its economy and
become a world class tourism destination.

Notes:

1.The primary difference between statutory revenue and management basis
    revenue is the treatment of City Clubs revenue where fee income is
    reported on a statutory basis and gaming revenue is reported on a
    management basis.
2.ROI calculated based on the total Adjusted EBITDA for the latest twelve
    months divided by gross book value through 31 March 2014 including
    allocated land cost.
3.ROI calculated based on the total Adjusted EBITDA for the latest twelve
    months divided by gross book value through 31 March 2014 including
    allocated land cost.

About Galaxy Entertainment Group (HKEx stock code: 27)

Galaxy Entertainment Group Limited ("GEG") is one of Asia's leading gaming and
entertainment corporations, and is a member of the Hang Seng Index.

GEG primarily develops and operates hotels, gaming and integrated resort
facilities in Macau, the only legal gaming location in China and the largest
gaming entertainment 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
Macau, 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 targeted completion by mid-2015, Galaxy Macau™ Phase 2 will
bring to Macau some of the most exciting entertainment, leisure, retail and
MICE facilities. In December 2012, GEG outlined its concept plans for Phases 3
& 4 of its Cotai landbank and expects to commence construction as early as
late 2014.

Recently GEG entered into a framework agreement with the Hengqin Island
authority to develop a 2.7 square kilometre land parcel for a world class
destination resort in Hengqin Island. This project will complement GEG's
business in Macau and differentiate us from our peers, as well as play a key
role in supporting Macau to become a world centre of tourism and leisure.

Additionally, GEG operates a Construction Materials Division.

For more information, please visit www.galaxyentertainment.com.

To see the full version of this release, including financial tables, click
here: http://photos.prnasia.com/prnk/20140520/8521402875-c

For Media Enquiries:

Galaxy Entertainment Group

Mr. Peter J. Caveny                 Ms. Yoko Ku
Vice President, Investor Relations Manager, Investor Relations
Tel: +852-3150-1111                 Tel: +852-3150-1111
Email: ir@galaxyentertainment.com  Email: ir@galaxyentertainment.com

SOURCE Galaxy Entertainment Group Limited

Website: http://www.galaxyentertainment.com
Website: http://photos.prnasia.com/prnh/20140520/8521402875-a
Website: http://photos.prnasia.com/prnk/20140520/8521402875-c
 
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