The management of Galaxy Entertainment Group underlined its strong belief in the “future of mass gaming and entertainment” as the main focus sectors for the gaming operator, while confirming that the development of Galaxy Macau’s Phase 4 is ‘well underway’ and scheduled to be completed in 2027.
During the group’s conference call concerning its 2023 fourth-quarter results, GEG’s Chief Financial Officer, Ted Chan, defended that the mass market offers a more sustainable and stable revenue stream.
‘Throughout 2023, GEG has experienced a progressive recovery in Mass revenue compared to 2019. At the reopening in Q1, our Mass revenue was 67 percent of 2019’s level, which we have grown to 107 percent in Q4,’ Chan pointed out.
In the last three months of 2023, Galaxy Macau’s mass market achieved 126 percent of 2019’s level, where StarWorld was approximately 75 percent.
‘We continue to refine and upgrade our resorts to make them even more appealing. We are particularly focused on driving our higher-value customer to our properties and converting more of our non-gaming customer to gaming,’ the GEG CFO pointed out.
In late 2023, the group relocated the central premium mass high-limit gaming area and added a number of F&B options, while currently completing the construction of a new high-limit slot area and other amenities.
‘StarWorld, GEG evaluating a range of major upgrades, that include the main gaming floor, the lobby experience and increasing F&B options.
‘During Q4, we invested approximately $1.4 billion into development, bringing the full year investment to $5.5 billion. And in accordance with the gaming concession agreement, we will increase our investment commitment by 20 percent over the terms of the concessions,’ Chan added.
The group’s CFO also defended that GEG continued its efforts in managing expenses, with current staff number equivalent to 93 percent of 2019’s level even after the opening of Phase 3, including the full opening of Andaz, with staff costs representing around 75 percent of operational expenses.
Chan also confirmed the opening of Galaxy Macau Phase 4 in 2027, adding that the group plans to include a casino in the development.
Phase 3 consisted of three buildings – the 700-room Andaz hotel, the 450-suite Raffles hotel and the 40,000-square-metre Galaxy International Convention Centre (GICC), which opened last year.
Phase 4 will include six high-end hotel brands new to Macau, together with a 4,000-seat theater, extensive F&B, retail, non-gaming amenities, landscaping, and a water resort deck, with some HK$5.1 billion ($651.6 million) earmarked for the project
‘Before the opening, definitely, we’d like to clarify with the government if there’s any possibility to have more tables to allocate to the guests,’ Chan added.
