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Galaxy results impress, with almost $358M in EBITDA in 4Q23

Galaxy Entertainment Group (GEG) has announced strong financial results for the fourth quarter and full year 2023, which allowed for the group to advance with dividend distribution.

In the last three months of the year, the company’s Adjusted EBITDA reached HK$2.8 billion ($357.7 million), in contrast to about HK$163 million ($21 million) in negative operation results in the same period of 2022, but almost unchanged from the previous quarter.

In terms of net revenue, Galaxy’s results improved 7 percent quarter-to-quarter to HK$10.3 billion ($1.2 billion), but an impressive 254 percent year-on-year.

As for the full year of 2023, Galaxy’s Adjusted EBITDA surged to HK$10 billion ($1.2 billion), a considerable improvement from HK$553 million ($70 million) in negative operating results in 2022.

The group’s chairman, Lui Che Woo, stated in Galaxy’s latest financial report that the positive results, which also marked a 7 percent quarter-to-quarter increase, were achieved ‘despite continuing competition in both Macau and regionally and several geo-political and economic issues that impacted consumer sentiment’.

Lui also underlined that the company has maintained its financial stability, holding total cash and liquid investments amounting to HK$25 billion ($3.1 billion) and net cash reaching HK$23.5 billion ($3 billion) as of December 31, 2023.

‘In a move signalling confidence in Macau’s long-term prospects, GEG has announced special dividends, with a payout of HK$0.20 per share in October 2023 and another special dividend of HK$0.30 per share scheduled for April 26, 2024. This decision marks GEG as the first Macau concessionaire to resume dividends and return capital to shareholders post-border reopening,’ Lui pointed out.

A positive 2023

GEG reported a significant increase in net revenue during 2023, reaching HK$35.7 billion ($279.4 million), a remarkable surge of 211 percent year-on-year.

The group’s Cotai property, Galaxy Macau experienced a significant growth in Adjusted EBITDA, reaching HK$9.1 billion ($1.1 billion), a significant increase from HK$295 million ($37.6 million) in 2022, while StarWorld Macau demonstrated strong performance with an Adjusted EBITDA of HK$1.3 billion ($166.1 million), turning around from the HK$527 million ($67.3 million) in losses 2022.

However, Broadway Macau’s Adjusted EBITDA reported a decrease to HK$36 million compared to HK$62 million ($7.9 million) in 2022.

In 2023, GEG faced unfavourable outcomes in its gaming operations, resulting in a decrease of approximately HK$162 million ($20.6 million) in Adjusted EBITDA.

The Group’s total Gross Gaming Revenue (GGR) on a management basis in 2023 amounted to HK$31.7 billion ($4 billion), marking a substantial increase of 322 percent year-on-year.

Mass GGR showed significant growth, reaching HK$26.5 billion ($3.3 billion), up 328 percent year-on-year, while VIP GGR increased to HK$3.4 billion ($434.4 million), a rise of 273 percent year-on-year, while Electronic GGR saw a notable increase to HK$1.8 billion ($230 million), up 340 percent year-on-year.

In 2023, GEG completed several development projects, including the opening of Raffles at Galaxy Macau and the premium mass Horizon Club, alongside the Galaxy International Convention Centre and Galaxy Arena.

The progressive launch of Andaz Macau further solidifies the company’s presence, with approximately 200 MICE events and 85 concerts and performances held across various venues.

Looking ahead, GEG is focusing on Phase 4 development, a sprawling 600,000 square meters project slated for completion in 2027.

This phase aims to introduce multiple high-end hotel brands new to Macau, a 4.000-seat theater, F&B options, retail outlets, non-gaming amenities, and a casino targeting the ‘evolving market seeking comprehensive lifestyle experiences’.

Moreover, GEG is actively collaborating with the Macao Government Tourism Office (MGTO) to explore international markets and align its business strategies accordingly.

The company has expanded its presence by opening overseas offices in Tokyo and Seoul in 2023, with plans for another office in Bangkok soon.

Nelson Moura
Nelson Moura
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.