Galaxy Entertainment Group said it will recruit 8,000 workers for the expansion of its Galaxy Macau resort casino on Cotai.
The hiring will begin the end of this year, the company said during its second-quarter earnings call, also announcing that the Grand Waldo hotel casino across the street from the company’s flagship, which Galaxy purchased last year and closed for remodeling, will reopen early in 2015.
The company also said it expects to begin construction on Galaxy Macau phases 3 and 4 by the end of this year.
Galaxy reported a 15 percent increase in EBITDA in the second quarter to HK$3.5 billion (US$452 million) as the company outpaced the rest of the market in VIP play and was able to post a 16 percent jump in revenue year on year to HK$18.2 billion ($2.33 billion).
Hong Kong-listed Galaxy joined SJM Holdings as the only operators to beat analysts’ expectations for the quarter.
VIP turnover was up 27 percent in the 12 weeks through June 30 versus a citywide decline of 6 percent. Conversely, growth in mass-market revenue lagged the competition at plus-21 percent versus plus-32 percent, respectively. Mass tables generated HK$4.11 billion on a 3 percent increase in drop.
Slot handle was up 12 percent to $432 million, flat with Q2 2013.
EBITDA was up 26 percent through the first six months of the year to HK$7.3 billion on a 25 percent increase in revenue to $38.4 billion, compared to the same period last year. First-half net income was up 29 percent to $6 billion (US$774 million).
The company plans to pay a special dividend of HK$0.45 on October 31.
Looking forward, recently announced increases in employee bonuses and other benefits needed to retain and attract staff amid an acute citywide labor shortage that has sparked worker protests will add about $150 million to quarterly costs and shave 1 percent to 1.5 percent off EBITDA margins, said management, which also is considering offering stock options as an additional incentive.
