Galaxy Entertainment Group has reported a 52 percent increase in net profit for the first half of 2024, totaling over HK$4.4 billion ($564.7 million), on the back of a revenue increase of 37 percent yearly, to HK$21.5 billion ($2.76 billion).
The group’s adjusted EBITDA also increased by 37 percent yearly, reaching HK$6 billion ($770 million), with some HK$3.2 billion ($410.7 million) of that being added in the second quarter (up 28 percent yearly and 12 percent quarterly).
Speaking of the results, the group’s Chairman, Lui Che Woo, noted that “We continued to drive every segment of our business and further improve our resorts”.
Total gross gaming revenue during the period was HK$20 billion ($2.57 billion), a 45 percent yearly increase.
Mass GGR totaled HK$16 billion ($2.05 billion), a yearly increase of 43 percent, while rolling chip GGR totaled HK$2.7 billion ($346.5 million) – a 56 percent year-on-year rise. Electronic gaming GGR also saw a strong increase, of 61 percent yearly, to HK$1.3 billion ($166.85 million).
Cotai
The group’s primary property – Galaxy Macau – brought in some HK$6.95 billion ($892 million) in net revenue during 1H24 – up by 43 percent yearly, with HK$8.6 billion ($1.1 billion) contributed during the second quarter (up 32 percent yearly and 4 percent sequentially).
This was helped by gaming revenues at the property of HK$14.23 billion ($1.83 billion), up 44.2 percent yearly. During the second quarter gaming revenues totaled HK$7.35 billion ($943.35 million), up by 6.67 percent sequentially and 35.3 percent yearly.
The rolling chip volume reached HK$82.01 billion ($10.53 billion) in 1H24, up by 62 percent yearly, with the second quarter seeing a 19 percent sequential increase and a 53.4 percent yearly rise.
The group notes that Galaxy Macau ‘experienced bad luck in its gaming operations’ during the six-month period, causing a fall in adjusted EBITDA of ‘approximately HK$5 million ($641,730) ’- amounting to HK$5.4 billion ($693.1 million) – still a 37 percent rise yearly.
Macau Peninsula
The group’s StarWorld property, on Macau’s peninsula, saw gaming revenues of HK$2.42 billion ($310.6 million) during 1H24 – up by 25.6 percent yearly.
Gaming revenue in the second quarter fell sequentially at the property, down by 3.6 percent sequentially, but rising by 7.9 percent yearly.
The group notes that in 1H24 ‘StarWorld Macau experienced good luck in its operations which increased its adjusted EBITDA by approximately HK$48 million ($6.16 million)’. Total adjusted EBITDA amounted to HK$777 million ($99.73 million).
The group notes that it is ‘evaluating a range of major upgrades’ for StarWorld, ‘that includes the main gaming floor, the lobby arrival experience and increasing the F&B options’.
New developments
Looking ahead, the group is planning to open its 17-storey ultra-luxury hotel Capella in mid-2025. Meanwhile the group continues its ramp-up of the Galaxy International Convention Center (GICC), Galaxy Arena, Raffles and Andaz hotels.
Its Phase 4 is scheduled to be completed in 2027, bringing ‘multiple high-end hotel brands new to Macau’, along with a 5,000-seat theatre, F&B, retail, non-gaming, a water resort deck and a casino.
The group’s Chairman noted that Phase 4 “has a strong focus on non-gaming, primarily targeting entertainment, family facilities,” but also including gaming.
Smart tables
The company’s Chairman notes that it is “well advanced with the implementation of smart tables” and that it recently “completed the backend systems integration and customer database transfer” as well as the “live back-of-house pilot testing of smart tables”.
Lui Che Woo noted that “in early July, we commented the rollout of smart tables across Galaxy Macau’s main gaming floor. We anticipate to complete the full rollout by year end”.
Other contributors
The group’s other, smaller Cotai venue, Broadway Macau brought in net revenue of HK$100 million ($12.83 million) for 1H24, up by 144 percent yearly. Adjusted EBITDA turned positive, at HK$12 million ($1.54 million) for the six-month period, reversing a HK$20 million ($2.57 million) loss in 1H23.
The City Clubs operated by Galaxy saw a 29 percent yearly rise in adjusted EBITDA, reaching HK$9 million ($1.16 million).
Meanwhile, the group’s construction materials division brought in adjusted EBITDA of HK$366 million ($46.97 million), an 11 percent rise ‘predominantly driven by the strength in demand for construction materials in Hong Kong and Macau’.
The group saw a particular increase in demand for ready-mixed concrete – for both Hong Kong airport’s three runway project and the development works of Macau’s Zone A reclamation area.
