Galaxy Entertainment Group (GEG) reported strong financial performance for the third quarter of 2024, with an 11 percent year-on-year increase in group revenue to HK$10.7 billion ($1.38 billion).
This growth reflects the company’s solid position as a key player in the region’s gaming and hospitality sectors, despite a 2 percent decline in revenue compared to the previous quarter.
According to the financial results released on Thursday morning, GEG’s group adjusted EBITDA for 3Q24 was HK$2.9 billion ($373 million), representing a 6 percent increase year-on-year, but a 7 percent decrease compared to the previous quarter.
The company’s gaming operations experienced an unlucky quarter in 3Q24, leading to an approximate HK$165 million reduction in adjusted EBITDA. However, when normalized, 3Q24 adjusted EBITDA stood at HK$3.1 billion ($399 million), up 7 percent year-on-year, though slightly down by 3 percent compared to the previous quarter.
As of September 30th, 2024, GEG’s balance sheet remained healthy, with cash and liquid investments totaling HK$28.6 billion ($3.68 billion). The company reported a net position of HK$27.4 billion ($3.53 billion), after accounting for HK$1.2 billion ($154 million) in debt.
GEG also paid an interim dividend of HK$0.50 ($0.064) per share on October 25th, 2024, demonstrating its commitment to rewarding shareholders.
Despite the challenges faced in 3Q24, GEG remains well-positioned for future growth. With a strong financial foundation and strategic focus, the company is poised to navigate future opportunities and challenges in the dynamic gaming and hospitality markets.
Galaxy Macau hotel occupancy rate reaches 98 percent
Galaxy Macau, GEG’s integrated resort located in the Cotai area, continues to be a major revenue generator for GEG. In 3Q24, Galaxy Macau’s net revenue totaled HK$8.4 billion ($1.08 billion), up 10 percent year-on-year but down 3 percent compared to the previous quarter.
This two-digit revenue growth underscores the property’s resilience, even though its adjusted EBITDA remained flat year-on-year at HK$2.6 billion ($335 million), representing an 8 percent decline from the previous quarter.
Unfavorable gaming results in 3Q24 led to a decrease in adjusted EBITDA by approximately HK$180 million ($23.2 million). However, normalized adjusted EBITDA for the quarter stood at HK$2.7 billion ($347 million), up 2 percent year-on-year, though slightly down by 3 percent compared to the previous quarter.
Hotel occupancy across Galaxy Macau’s seven hotels reached an impressive 98 percent in 3Q24, reflecting strong demand for the resort’s accommodations. This solid performance in the hospitality sector aligns with the company’s strategic position for future growth, reinforcing Galaxy Macau’s key role in GEG’s portfolio.
In addition to Galaxy Macau, StarWorld Macau also contributed positively, with 3Q24 net revenue of HK$1.3 billion ($167 million), up 9 percent year-on-year and 1 percent quarter-on-quarter.
Adjusted EBITDA for StarWorld Macau reached HK$396 million, up 14 percent year-on-year and 2 percent quarter-on-quarter. The property experienced favorable gaming results in 3Q24, which contributed an additional HK$15 million ($1.9 million) to adjusted EBITDA, bringing the normalized figure to HK$381 million ($49 million)—up 9 percent year-on-year and 7 percent quarter-on-quarter. StarWorld achieved full hotel occupancy in 3Q24, with a 100 percent rate.
Additionally, Broadway Macau and the City Clubs also made positive contributions. Broadway Macau’s 3Q24 adjusted EBITDA improved to HK$11 million ($1.4 million), compared to a loss of HK$14 million ($1.8 million) in 3Q23, while the City Clubs reported a 20 percent increase in adjusted EBITDA both year-on-year and quarter-on-quarter. The City Clubs division operates GEG’s satellite casinos and hotels.
