Casinos in Macau: Galaxy Entertainment Group net revenue up 11% in Q3

The casino operator posted net revenue of HK$10.7bn for the third quarter.

Macau.- Galaxy Entertainment Group has released its financial results for the third quarter of the year. Net revenue was HK$10.7bn (US$1.38bn), up 11 per cent in year-on-year terms but down 2 per cent sequentially.

The company posted adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HK$$2.94bn (US$378m). That’s a rise of 6 per cent when compared to last year but down 7 per cent in quarter-on-quarter terms. For the last 12 months combined, the company’s adjusted EBITDA was up 68 per cent at HK$11.8bn (US$1.52bn).

Gross gaming revenue (GGR) was HK$10.2bn (US$1.31m), up 16 per cent year-on-year but down 2 per cent quarter-on-quarter. Mass table win was HK$8.39bn (US$1.08bn), rolling chip win was HK$1.10bn (US$141m) and electronic gaming win was HK$666m (US$86m).

Galaxy Macau’s net revenue was up 10 per cent year-on-year but down 3 per cent sequentially at HK$8.4bn (US$1.11bn). Gaming revenue was HK$6.9bn (US$911m), down 6.38 per cent sequentially but up 10.40 per cent year-on-year. Non-gaming revenue was HK$1.47bn (US$189m) while adjusted EBITDA was HK$2.56bn (US$329m), flat year-on-year and down 8 per cent quarter-on-quarter.

According to the company, Galaxy Macau “played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately HK$180m in the third quarter of the year.” Hotel occupancy across its seven hotels was 98 per cent.

StarWorld Macau’s net revenue was HK$1.3bn (US$171.61m), up 9 per cent year-on-year and 1 per cent sequentially. Adjusted EBITDA was HK$396m (US$51m), up 14 per cent year-on-year and 2 per cent quarter-on-quarter. Hotel occupancy for the third quarter of the year was 100 per cent.

Broadway Macau’s net revenue was HK$62m (US$8m), up 158 per cent year-on-year and 15 per cent quarter-on-quarter. Adjusted EBITDA was HK$11m (US$1.4m) compared with HK$8m (US$1m) in the second quarter of the year and HK$14m (US$1.8m) in the third quarter of 2023.

Company chairman Lui Che Woo said: “Our balance sheet continued to be healthy and liquid with total cash and liquid investments of HK$28.6bn and the net position was HK$27.4bn after debt of HK$1.2bn. Our solid balance sheet and cash flow from operations allows us to return capital to shareholders through dividends, fund our development pipeline and pursue our international expansion ambitions. On 25 October 2024, we paid the previously announced interim dividend of HK$0.50 per share. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the Company.

“On the development front, we continue to move forward with the fitting out of the Capella at Galaxy Macau and Phase IV, which has a strong focus on non-gaming, primarily targeting entertainment, and family facilities and includes gaming.”

“We were very pleased to celebrate the 75th anniversary of the founding of the People’s Republic of China and are pleased to welcome the 25th anniversary of Macau’s return to the Motherland this December. Furthermore, we congratulate Mr. Sam Hou Fai who was elected as the new Chief Executive of Macau SAR.

“Finally, I would like to thank all our team members who deliver ‘World Class, Asian Heart’ service each and every day and contribute to the success of the group.”

The Capella at Galaxy Macau to open in mid-2025

Che Woo said the company aims to open Capella at Galaxy Macau in mid-2025. The 17-storey property has approximately 100 ultra-luxury sky villas and suites. He added that the company is ramping up Galaxy International Convention Center (GICC), Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau.

He said: “Phase 4 will include multiple high-end hotel brands new to Macau, together with an up to 5000-seat theatre, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino. Phase 4 is approximately 600,000 square meters of development and is scheduled to complete in 2027. We remain highly confident about the future of Macau where Phases 3 & 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure.”