Galaxy Entertainment Group Selected Unaudited Q1 2019 Financial Data

Q1 ADJUSTED EBITDA OF $4.0 BILLION, DOWN 8% YOY, DOWN 8% QOQ

INCREASING COMMITMENT TO MACAU WITH RESORT ENHANCEMENTS AND
DEVELOPMENT WORKS FOR COTAI PHASES 3 & 4

PAID PREVIOUSLY ANNOUNCED SPECIAL DIVIDEND OF $0.45/SHARE

HONG KONG–(BUSINESS WIRE)–Galaxy Entertainment Group (“GEG”, “Company” or the “Group”) (HKEx stock
code: 27) today reported selected unaudited financial data for the three
months period ended 31 March 2019. (All amounts are expressed in HKD
unless otherwise stated)

Q1 2019 RESULTS HIGHLIGHTS

GEG: Strong Mass Performance, Challenging VIP Segment

• Q1 Group Net Revenue of $13.0 billion, down 8% year-on-year and down
  8% quarter-on-quarter
• Q1 Group Adjusted EBITDA of $4.0 billion, down 8% year-on-year, down
  8% quarter-on-quarter
• Played lucky in Q1 which increased Adjusted EBITDA by approximately
  $111 million, normalized Q1 Adjusted EBITDA of $3.9 billion, down 12%
  year-on-year and down 9% quarter-on-quarter
• Latest twelve months Adjusted EBITDA of $16.5 billion, up 8%
  year-on-year, down 2% quarter-on-quarter

Galaxy Macau^TM: Solid Mass Performance while
Maintaining Margin

• Q1 Net Revenue of $9.3 billion, down 6% year-on-year and down 11%
  quarter-on-quarter
• Q1 Adjusted EBITDA of $3.0 billion, down 7% year-on-year, down 12%
  quarter-on-quarter
• Played lucky in Q1 which increased Adjusted EBITDA by approximately
  $39 million, normalized Q1 Adjusted EBITDA of $3.0 billion, down 13%
  year-on-year and down 8% quarter-on-quarter
• Hotel occupancy for Q1 across the five hotels was virtually 100%

StarWorld Macau: Solid Mass Performance while Maintaining Margin

• Q1 Net Revenue of $3.0 billion, down 7% year-on-year and flat
  quarter-on-quarter
• Q1 Adjusted EBITDA of $949 million, down 5% year-on-year, up 6%
  quarter-on-quarter
• Played lucky in Q1 which increased Adjusted EBITDA by approximately
  $68 million, normalized Q1 Adjusted EBITDA of $881 million, down 5%
  year-on-year and down 13% quarter-on-quarter
• Hotel occupancy for Q1 was virtually 100%

Broadway Macau™: A Unique Family Friendly Resort, Strongly Supported
By Macau SMEs

• Q1 Net Revenue of $151 million, up 6% year-on-year and up 5%
  quarter-on-quarter
• Q1 Adjusted EBITDA of $15 million, up 15% year-on-year, up 88%
  quarter-on-quarter
• Played lucky in Q1 which increased Adjusted EBITDA by approximately $4
  million, normalized Q1 Adjusted EBITDA of $11 million, up 10%
  year-on-year and up 57% quarter-on-quarter
• Hotel occupancy for Q1 was 95%

Balance Sheet: Healthy Balance Sheet

• Cash and liquid investments were $49.3 billion and net cash was $42.5
  billion as at 31 March 2019
• Debt of $6.8 billion as at 31 March 2019, primarily reflects ongoing
  treasury yield management initiative
• Paid the previously announced special dividend of $0.45 per share on
  26 April 2019

Development Update: Continue to Pursue Development Opportunities

• Cotai Phases 3 & 4 – Continue with development works for Phases 3 & 4,
  with a strong focus on non-gaming, primarily targeting MICE,
  entertainment, family facilities and also including gaming
• Hengqin – Refining our plans for a lifestyle resort to complement our
  high-energy entertainment resorts in Macau
• International – Continuously exploring opportunities in overseas
  markets, including Japan

Dr. Lui Che Woo, Chairman of GEG said:

“Overall given the prevailing market conditions, I believe the
Group delivered a solid financial result. During the first
quarter, Macau experienced a number of events that impacted the market,
most notably in the VIP segment. These included the introduction of the
full smoking ban plus increased competition from both local and regional
casinos that have a significant economic advantage compared to Macau.

We continue to progress with the previously announced $1.5 billion
renovation enhancement program in both Galaxy Macau^TM and
StarWorld Macau. Whilst there has been some disruption, we believe this
enhancement program will make our resorts even more attractive to
guests. We anticipate to complete this program in the early part of 2020.

In Q1 2019, GEG reported net revenue of $13.0 billion, down 8%
year-on-year and down 8% quarter-on-quarter. Adjusted EBITDA was $4.0
billion, down 8% year over year and down 8% quarter-on-quarter.

We paid the previously announced special dividend of $0.45 per share on
26 April 2019. Our balance sheet remains healthy and liquid with total
cash and liquid investments of $49.3 billion and net cash of $42.5
billion as at 31 March 2019.

Macau has continued to see strong growth in visitor arrivals post the
opening of the Hong Kong-Zhuhai-Macau Bridge and the continued buildout
of the High Speed Rail Network. Visitor arrivals in the first quarter
were 10.4 million, up 21% year-on-year.

We continue with our development works for Phases 3 & 4, and with our
planning for a lifestyle resort in Hengqin. We also continue with our
efforts in Japan where we have submitted numerous Requests For
Information to selected Japanese cities and prefectures.

2019 is an important year for China and Macau with a particular focus on
three major events. These include celebrating the 70^th
anniversary of the founding of the People’s Republic of China, it is
also the 20^th anniversary of the return of Macau to China.
Further, we look forward to the election of the next Chief Executive who
will take office in 2019.

We remain confident in the medium to longer term outlook for Macau in
general and GEG specifically given the continued growth in demand for
tourism, leisure and travel from Mainland China. We also believe the
integration of Macau into the Greater Bay Area will be positive for the
development of Macau. We are committed to supporting the Macau
Government’s vision to develop Macau into a World Center of Tourism and
Leisure.”

Macau Market Overview

In the first quarter, Gross Gaming Revenue (“GGR”) was impacted by the
introduction of the full smoking ban and increased competition from both
local and regional casinos. Macau GGR for Q1 2019 was $73.9 billion,
down 0.5% year-on-year and down 3% quarter-on-quarter. VIP GGR was $36.1
billion, down 13% year-on-year and down 11% quarter-on-quarter.

In Q1 2019, visitor arrivals to Macau were 10.4 million, up 21%
year-on-year. Visitors from Mainland China grew at a faster rate of 24%
year-on-year. Overnight visitors were up 9% year-on-year and accounted
for 46% of total visitation. The average length of stay for overnight
visitors was 2.2 days. Meanwhile, visitors from the cities in the
Greater Bay Area grew by 17% year-on-year to 1.4 million.

Group Financial Results

In Q1 2019, the Group posted net revenue of $13.0 billion, down 8%
year-on-year and down 8% quarter-on-quarter. Adjusted EBITDA was $4.0
billion, down 8% year-on-year and down 8% quarter-on-quarter. Galaxy
Macau™’s Adjusted EBITDA was $3.0 billion, down 7% year-on-year and down
12% quarter-on-quarter. StarWorld Macau’s Adjusted EBITDA was $949
million, down 5% year-on-year and up 6% quarter-on-quarter. Broadway
Macau™’s Adjusted EBITDA was $15 million, up 15% year-on-year and up 88%
quarter-on-quarter.

GEG played lucky in Q1 2019 which increased Adjusted EBITDA by
approximately $111 million. Normalized Q1 Adjusted EBITDA was $3.9
billion, down 12% year-on-year and down 9% quarter-on-quarter.

The Group’s total GGR on a management basis¹ in Q1 2019 was
$15.4 billion, down 10% year-on-year and down 10% quarter-on-quarter.
Total mass table GGR was $7.3 billion, up 9% year-on-year and flat
quarter-on-quarter. Total VIP GGR was $7.4 billion, down 25%
year-on-year and down 18% quarter-on-quarter. Total electronic GGR was
$606 million, up 1% year-on-year and down 11% quarter-on-quarter.

Balance Sheet and Special Dividend

As of 31 March 2019, cash and liquid investments were $49.3 billion and
net cash was $42.5 billion. Total debt was $6.8 billion, primarily
reflects an ongoing treasury management exercise where interest income
on cash holdings exceeds corresponding borrowing costs. GEG paid the
previously announced special dividend of $0.45 per share on 26 April
2019. Our balance sheet combined with cash flow from operations allows
us to return capital to shareholders via special dividends and to fund
both our Macau development pipeline and international expansion
ambitions.

Galaxy Macau™

Galaxy Macau™ is the primary contributor to Group revenue and earnings.
In Q1 2019, Galaxy Macau™’s net revenue was $9.3 billion, down 6%
year-on-year and down 11% quarter-on-quarter. Adjusted EBITDA was $3.0
billion, down 7% year-on-year and down 12% quarter-on-quarter. Adjusted
EBITDA margin under HKFRS was 33% (Q1 2018: 33%).

Galaxy Macau™ played lucky in Q1 2019 which increased Adjusted EBITDA by
approximately $39 million. Normalized Q1 Adjusted EBITDA was $3.0
billion, down 13% year-on-year and down 8% quarter-on-quarter.

Hotel occupancy for Q1 across the five hotels was virtually 100%.

StarWorld Macau

In Q1 2019, StarWorld Macau’s net revenue was $3.0 billion, down 7%
year-on-year and flat quarter-on-quarter. Adjusted EBITDA was $949
million, down 5% year-on-year and up 6% quarter-on-quarter. Adjusted
EBITDA margin under HKFRS was 32% (Q1 2018: 31%).

StarWorld Macau played lucky in Q1 2019 which increased Adjusted EBITDA
by approximately $68 million. Normalized Q1 Adjusted EBITDA was $881
million, down 5% year-on-year and down 13% quarter-on-quarter.

Hotel occupancy for Q1 was virtually 100%.

Broadway Macau™

Broadway Macau™ is a unique family friendly, street entertainment and
food resort supported by Macau SMEs, it does not have a VIP gaming
component. In Q1 2019, Broadway Macau™’s net revenue was $151 million,
up 6% year-on-year and up 5% quarter-on-quarter. Adjusted EBITDA was $15
million, up 15% year-on-year and up 88% quarter-on-quarter. Adjusted
EBITDA margin under HKFRS was 10% (Q1 2018: 9%).

Broadway Macau™ played lucky in Q1 2019 which increased Adjusted EBITDA
by approximately $4 million. Normalized Q1 Adjusted EBITDA was $11
million, up 10% year-on-year and up 57% quarter-on-quarter.

Hotel occupancy for Q1 was 95%.

City Clubs

In Q1 2019, City Clubs contributed $27 million of Adjusted EBITDA to the
Group’s earnings, up 4% year-on-year and down 7% quarter-on-quarter.

Construction Materials Division

The Construction Materials Division contributed Adjusted EBITDA of $200
million, down 10% year-on-year and down 2% quarter-on-quarter.

Development Update

Galaxy Macau™ and StarWorld Macau

To maintain our attractiveness and competitiveness, we are proceeding on
a $1.5 billion property enhancement program for Galaxy Macau™ and
StarWorld Macau. This program not only enhances our attractiveness, but
also includes preparation work for the effective future integration and
connectivity of Phases 3 & 4.

Cotai – The Next Chapter

GEG is uniquely positioned for long term growth. We continue with
development works for Phases 3 & 4, which will include approximately
4,500 hotel rooms, including family and premium high end rooms, 400,000
square feet of MICE space, a 500,000 square feet 16,000-seat
multi-purpose arena, F&B, retail and casinos, among others. We
look forward to formally announcing our development plans in the future.

Hengqin

We continue to make progress with our concept plan for a lifestyle
resort on Hengqin that will complement our high energy resorts in Macau.

International

Our Japan based team continues with our Japan development efforts. We
view Japan as a great long term growth opportunity that will complement
our Macau operations and our other international expansion ambitions.
GEG, together with Monte-Carlo SBM from the Principality of Monaco and
our Japanese partners, look forward to bringing our brand of World Class
IRs to Japan.

Selected Major Awards in Q1 2019

Outlook

The first quarter proved to be demanding, particularly in the VIP
segment. Growth in visitor arrivals is solid driven by the continued
build out of infrastructure such as the Hong Kong-Zhuhai-Macau Bridge,
the ongoing expansion of the High Speed Rail Network and the integration
of Macau into the Greater Bay Area.

We continue with the construction works of Phases 3 & 4. These new
developments will cater to the next wave of tourists and the resorts
will be the only next generation products in Macau.

We continue to progress with the previously announced $1.5 billion
renovation enhancement program and expect this program to be completed
in early 2020.

We also continue with planning for a lifestyle resort in Hengqin that
will complement our high energy resorts in Macau. We are also
progressing with our efforts in Japan and continue to actively build
relationships with all stakeholders.

We are well positioned for future growth with a healthy and liquid
balance sheet. This certainly allows us to continue with our development
plans, international expansion ambitions and pay special dividends.

We would like to thank all of our hard working staff who contribute
greatly to our success and we are actively supporting the Macau
Government on achieving their vision of building Macau into a World
Centre of Tourism and Leisure.

– END –

About Galaxy Entertainment Group (HKEx stock code:
27)

Galaxy Entertainment Group (“GEG” or the “Group”) is one of the world’s
leading resorts, hospitality and gaming companies. It primarily develops
and operates a large portfolio of integrated resort, retail, dining,
hotel and gaming facilities in Macau. The Group is listed on the Hong
Kong Stock Exchange and is a constituent stock of the Hang Seng Index.

GEG is one of the three original concessionaires in Macau with a
successful track record of delivering innovative, spectacular and
award-winning properties, products and services, underpinned by a “World
Class, Asian Heart” service philosophy, that has enabled it to
consistently outperform and lead the market in Macau.

GEG operates three flagship destinations in Macau: on Cotai, Galaxy
Macau™, one of the world’s largest integrated destination resorts, and
the adjoining Broadway Macau™, a unique landmark entertainment and food
street destination; and on the Peninsula, StarWorld Macau, an award
winning premium property.

The Group has the largest undeveloped landbank of any concessionaire in
Macau. When The Next Chapter of its Cotai development is completed,
GEG’s resorts footprint on Cotai will double to more than 2 million
square meters, making the resorts, entertainment and MICE precinct one
of the largest and most diverse integrated destinations in the world.
GEG is also planning to develop a world class, lifestyle leisure resort
on a 2.7 square kilometer land parcel on Hengqin adjacent to Macau. This
resort will complement GEG’s offerings in Macau, and at the same time
differentiate it from its peers while supporting Macau in its vision of
becoming a World Centre of Tourism and Leisure.

In July 2015, GEG made a strategic investment in Société Anonyme des
Bains de Mer et du Cercle des Etrangers à Monaco (“Monte-Carlo SBM”), a
world renowned owner and operator of iconic luxury hotels and resorts in
the Principality of Monaco. GEG continues to explore a range of
international development opportunities with Monte-Carlo SBM including
Japan.

GEG is committed to delivering world class unique experiences to its
guests and building a sustainable future for the communities in which it
operates.

For more information about the Group, please visit www.galaxyentertainment.com

¹ The primary difference between statutory gross revenue and
management basis gross revenue is the treatment of City Clubs revenue
where fee income is reported on a statutory basis and gross gaming
revenue is reported on a management basis. At the group level the gaming
statistics include Company owned resorts plus City Clubs.

² Gaming statistics are presented before deducting commission
and incentives.

³ Reflects junket rolling chip volume only.

⁴ Mass table drop includes the amount of table drop plus cash
chips purchased at the cage.

⁵ Total GGR win includes gaming win from City Clubs.

⁶ Gaming statistics are presented before deducting commission
and incentives.

⁷ Reflects junket rolling chip volume only.

⁸ Mass table drop includes the amount of table drop plus cash
chips purchased at the cage.

⁹ Gaming statistics are presented before deducting commission
and incentives.

¹⁰ Reflects junket rolling chip volume only.

¹¹ Mass table drop includes the amount of table drop plus
cash chips purchased at the cage.

¹² Gaming statistics are presented before deducting
commission and incentives.

¹³ Mass table drop includes the amount of table drop plus
cash chips purchased at the cage.

¹⁴ Gaming statistics are presented before deducting
commission and incentives.

¹⁵ Reflects junket rolling chip volume only.

¹⁶ Mass table drop includes the amount of table drop plus
cash chips purchased at the cage.

Contacts

For Media Enquiries:
Galaxy
Entertainment Group – Investor Relations
Mr. Peter J. Caveny / Ms.
Yoko Ku / Ms. Joyce Fung
Tel: +852 3150 1111
Email: [email protected]