Galaxy Entertainment Group posts net revenue of US$371.7m for Q4

Revenue was up 43.4 per cent quarter-on-quarter but down 38.6 per cent year-on-year.

Macau.- Galaxy Entertainment Group has released its financial results for Q4 2022 and the full year. Despite a quarter-on-quarter increase of 43 per cent, Q4 net revenue decreased by 38.6 per cent year-on-year to HKD2.92bn (US$371.7m). Full-year 2022 net revenue was HKD11.5bn, down 42 per cent year-on-year. 

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the fourth quarter was negative HKD163m, compared with negative HKD581m in the preceding quarter. The casino operator reported a net loss of HKD3.43bn (US$437.5m) for the full year versus a profit of HKD1.32bn in 2021.

As of December 31, 2022, cash and liquid investments were HKD26.4bn and net cash was HKD18.9bn. Gross gaming revenue (GGR) on a management basis was HKD7.5bn in 2022, a decrease of 57 per cent year-on-year. 

Mass GGR was HKD6.2bn, down 45 per cent year-on-year, VIP GGR was HKD923m, down 83 per cent year-on-year, and electronic GGR was HKD405m, down 37 per cent year-on-year.

In the fourth quarter of 2022, the group’s net gaming revenues jumped by 93.7 per cent sequentially, to HKD1.59bn. However, in year-over-year terms, that was a 51.2 per cent decline.

Company chairman Lui Che Woo stated: “Macau like the rest of the world continued to experience the impact of Covid-19 throughout 2022, with sporadic outbreaks in Mainland China, Macau and Hong Kong and the subsequent travel and quarantine restrictions impacting visitor arrivals. 

“I am pleased to report that in early 2023 all the travel restrictions were lifted and Macau is well positioned to welcome Mainland and international visitors in 2023.”

Che Woo expressed optimism regarding a sustainable recovery in the coming years, particularly following the solid demand and associated revenue during the Chinese New Year holiday period.

GEG was recently awarded a new Gaming Concession by the Macau Government that will be valid through December 31, 2032. As part of this concession, GEG plans to invest nearly MOP28.4bn (US$3.5bn) over the next decade to enhance its integrated resorts’ facilities and services, with a focus on non-gaming ventures and exploring overseas customer markets.

GEG’s chairman confirmed that Cotai Phase 3 is effectively completed and that the company is continuing the development of Phase 4. Scheduled to progressively open in Q2 2023, Phase 3 will feature the Galaxy International Convention Center (GICC), Galaxy Arena, and Raffles at Galaxy Macau, with the first MICE event to be held in April 2023. 

Che Woo said “GEG is committed to invest in Macau’s economic diversification and support the Macau Government’s vision of becoming a World Centre of Tourism and Leisure by hosting a variety of world-class shows and performances. 

“We will bring known proven events into Macau to support the Government non-gaming drive. Additionally, we will introduce new and innovative events to further diversify Macau’s economy and attract international tourists.”