HONG KONG, Nov. 11 /PRNewswire-Asia-FirstCall/ -- Galaxy EntertainmentGroup Limited ("Galaxy" or the "Group") (HKEx stock code: 27) today announcedthe unaudited financial performance of the Company and its subsidiaries(collectively the "Group") for the third quarter ended 30 September 2009.

    Key Highlights:    -- Galaxy records fourth consecutive quarter of EBITDA growth    -- StarWorld continues to outperform the market with record VIP turnover       and fifth consecutive quarter of revenue and EBITDA growth    -- StarWorld's Q3 2009 VIP turnover up 50% over Q2 to an all-time record       HK$81 billion    -- Strong and liquid balance sheet with HK$3.8 billion of cash    -- Completed the acquisition of the Cotai site, securing Galaxy's long-       term development future    -- Galaxy Macau resort in Cotai to open in Q1 2011; estimated budget of       HK$14.1 billion

During the quarter under review, Galaxy's revenue was HK$2,853 million, anincrease of 16% over Q3, 2008 and an increase of 5% over Q2, 2009. Galaxy'sEBITDA (earnings before interest, taxation, depreciation, amortization andnon-recurring items) for Q3, 2009 was HK$278 million, a slight increase versusQ2, 2009 but up 181% compared to Q3, 2008.

Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group said: "Galaxycontinued to demonstrate strong growth momentum during the third quarter, withStarWorld outperforming the market and recording its fifth consecutive quarterof revenue and EBITDA growth and reported market leading occupancy levels."

StarWorld

In the third quarter of 2009, StarWorld delivered its fifth consecutivequarter of revenue and EBITDA growth. VIP turnover was HK$81,107 million, anincrease of 50% compared to Q2, 2009. Revenue and EBITDA reached HK$2,195million and HK$218 million respectively, increases of 8% and 1% compared to Q2,2009.

StarWorld experienced a below average VIP win rate of 2.3% during thequarter, well under the theoretical expected win rate of 2.8%. On anormalized basis (at the win rate of 2.8%) Galaxy would have reported anEBITDA of approximately HK$300 million for the quarter.

Occupancy of StarWorld Hotel, which remains Macau's only Five Star Diamondaward wining hotel, was 97% up from 85% in Q2, 2009 and well above the averageof Macau's Five Star Hotels in the quarter of 76%. StarWorld's average dailyrate (ADR) remained solid at HK$1,020 for the quarter.

    StarWorld's segmented revenue results for the quarters were as follows:    VIP Table Games:    VIP                              Q1             Q2           Q3    VIP Table Turnover (HK$)      $55 b          $54 b        $81 b    Win %                          3.0%           3.2%         2.3%    Gaming Revenue (HK$)         $1.7 b         $1.7 b       $1.8 b    Mass Table Games:    Mass Tables                      Q1             Q2           Q3    Table Drop (HK$)             $1.5 b         $1.4 b       $1.5 b    Win %                         16.8%          13.4%        15.6%    Gaming Revenue (HK$)         $253 m         $187 m       $230 m

City Clubs and Construction Materials

Both City Clubs and Construction Materials had a solid quarter. CityClubs contributed HK$41 million in EBITDA to the Group and ConstructionMaterials contributed HK$63 million. The Group continues to see signs thatConstruction Materials may be benefiting from the Chinese Central Government'sstimulus package which saw increased spending on infrastructure, and thedivision is well positioned for future growth.

Cotai Development

When complete, Galaxy Macau will be Macau's first fully-integrated resortdestination with a total area of approximately 550,000 square meters, 2,200hotel rooms, suites and floating villas and more than 7,700 predominantlylocal staff.

Galaxy Macau will house the Group's own highly regarded five star GalaxyHotel (based on the hugely successful StarWorld property), the five starJapanese Okura Hotel and an ultra exclusive Banyan Tree suite and villacomplex; together comprising three very diverse and world-class Asian hotelbrands.

The resort's gaming facilities will have a capacity of over 600 tables and1,200 electronic gaming machines in five auspiciously themed areas. Above thegaming facilities will be a 52,000 square meter oasis resort, with the world'slargest sky wave pool, a beach comprising 350 tonnes of white sand, lushgardens and water falls. A carefully selected portfolio of more than 50largely Asian food and beverage outlets and two distinct areas of retail willfurther add to Galaxy Macau's uniquely Asian offering.

Completion of the building's exterior is imminent and internal fit-outwill follow early in 2010 with opening in the first quarter of 2011. Galaxy isforging numerous partnerships to ensure world-class concept, construction, andservices, creating an authentic Asian customer experience. The total budgetfor the development will be approximately HK$14.1 billion.

Commenting on Galaxy Macau, Dr. Lui Che Woo, Chairman of GalaxyEntertainment Group said: "We are extremely excited about the opening ofGalaxy Macau. As the first element in a multi-phase long-term developmentplan, this project is a clear statement of our confidence and conviction inthe potential of Macau."

Strengthened Balance Sheet

During Q3, 2009 the Group took the opportunity to further strengthenGalaxy's already strong balance sheet through the repurchase of an additionalHK$117 million (US$15 million) of debt. After this debt repurchase, Galaxy'scash on hand as at 30 September was HK$3.8 billion.

Outlook for the Fourth Quarter of 2009

Dr. Lui Che Woo, Chairman of Galaxy Entertainment Group said: "We arecautiously optimistic about the outlook for the fourth quarter of 2009. Themacro trends are good and we are expecting Macau to achieve healthy growthbased on, the new Macau Chief Executive taking office; continuing progress ofthe Macau Gaming Chamber in cooperation with the Macau Government to maintainhealthy sustainable growth in the market; and the celebration of 10thanniversary of Macau reverting to Mainland China"

US GAAP Comparisons

In comparing Galaxy's results to those of US corporations whose resultsare prepared under generally accepted accounting principles in the UnitedStates ("US GAAP"), it should be noted that gross gaming revenues, presentedunder US GAAP, are reduced by commissions and discounts paid to players, toarrive at net gaming revenues. An adjusted EBITDA margin would then becalculated based on these reduced net gaming revenues, resulting in asignificantly higher EBITDA margin than that calculated under Hong Kongaccounting standards. Galaxy complies with Hong Kong accounting standards.

                                          StarWorld's EBITDA Margin                                  Q1 2009          Q2 2009          Q3 2009    Under US GAAP                   16%               18%              17%    Under HK GAAP                   10%               11%              10%

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

Galaxy Entertainment, through its subsidiary, Galaxy Casino, S.A., holds aMacau gaming concession. Galaxy is authorized to carry out casino games ofchance in Macau, which is the only legal gaming location in China.

Galaxy Entertainment owns and operates StarWorld Hotel and Casino - aluxury 5-Star property located on the Macau peninsula, and operates fourCityClub Casinos in Macau. The Group is well positioned for long-term growthon the Macau peninsula and in Cotai where the Group is developing a majorresort and has a substantial development landbank.

    For more details, please visit http://www.galaxyentertainment.com/eng    For further information, please contact:     Galaxy Entertainment Group     Mr. Peter J. Caveny     Principal, Investor Relations     Tel:   +852-3150-1111     Email: ir@galaxyentertainment.com     Ms. Vivian Fu     Senior Investor Relations Manager     Tel:   +852-3150-1111     Email: ir@galaxyentertainment.com

SOURCE Galaxy Entertainment Group Limited