Galaxy Entertainment Group (GEG) indicated that its recently announced dividend is to be paid out in April is a sign of the group’s strong financial situation.
In a recently published annual report for 2023, GEG stated it held HK$23.5 billion ($3 billion) in net cash reserves and ‘minimal debt’, thanks to robust cash flow from operations and positive non-performing assets.
According to the latest financial report, GEG had an encouraging third quarter in 2023, with net revenue rising to HK$9.7 billion ($1.24 billion), representing a 374 percent year-on-year increase.
The group recently announced announced a special dividend of HK$0.30 per share payable on or about April 26th, 2024.
As of December 31st, 2023, GEG held HK$1.5 billion ($191.5 million) in debt – an increase from the HK$1.1 billion ($140.4 million) reported in the previous year – which the group considered primarily reflected its ongoing treasury yield management initiatives.
‘Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders via dividends and to fund our development pipeline […] the dividend attests to our confidence in Macau, our financial strength and our future earnings potential,’ the group pointed out.
GEG stated to have reported almost full occupancy across for its approximately 5,000 hotel rooms in Macau, with gaming revenue surpassing 120 percent of the 2019 level during the Chinese New Year.
‘The Macau Government has allocated around MOP235 million ($29.1 million) this year to attract international visitors through overseas promotions and subsidies for airline tickets to Macau,’ the group raised.
‘GEG is actively supporting these initiatives by participating in international marketing events and setting up international business development offices in the region.’
Macau saw 28 million visitors in 2023, and the Macau Government Tourism Office (MGTO) anticipates this number to rise to around 33 million in 2024.
Phase 4 still set for 2027
As for Phase 4 of Galaxy’s IR in Cotai, GEG indicated it is ‘making steady progress with the development set to open in 2027’.
The Group is currently expanding its Cotai footprint by a further 600,000 square meters with the addition of Cotai Phase 4.
Phase 4 is planned to include six high-end hotel brands new to Macau, together with a 4,000-seat theater, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino, and bumping GEG’s hotel capacity to 7,500 rooms and suites.
‘This phase will prioritize non-gaming amenities such as entertainment and family facilities alongside gaming options. These developments will complete our Cotai ecosystem and position GEG strategically for future growth,’ the report points out.
Infrastructure improvements, including the forthcoming completion of the fourth cross-sea bridge linking Macau Peninsula and Taipa in 2024, and the recent opening of the Light Rail Transit’s Macau Barra station in December 2023, are expected to enhance accessibility and convenience for both tourists and residents.
‘We remain positive about Macau’s long-term prospects and are confident that our resorts offer a unique range of facilities and experiences that will continue to attract high-value customers and expand the visitor market,’ the concessionaire added.
