Macau casino operator Galaxy Entertainment Group Ltd reported a first-half profit of HKD2.89 billion (US$369.0 million), compared to a HKD850.47-million loss in the same period of 2022.
It also announced a special dividend of HKD0.20 per share, payable on October 27.
The information was given in a filing to the Hong Kong Stock Exchange on Thursday lunchtime.
Lui Che Woo, chairman of Galaxy Entertainment, was quoted in the announcement as saying, referring to the market since the lifting in January of Covid-19 related restrictions on travel: “During the period, Macau continued its business recovery and the group’s primary focus was on operational execution, recruitment and project development.”
The chairman added: “We believe that non-gaming is the future of Macau to drive a longer-staying and more diverse visitor base which aligns with the Macau government’s vision of building Macau into a world centre of tourism and leisure.”
The chairman was also cited as saying: “On the project development front, Galaxy Entertainment continued to move forward with Phase 4 construction” at its Galaxy Macau resort (pictured) on Cotai, “which will have a strong focus on non-gaming, primarily targeting MICE [meetings, incentives, conferences and exhibitions], entertainment, family facilities and [which] also includes gaming.”
The half-year result was on total revenue that rose 140.9 percent year-on-year, to HKD15.72 billion.
Gross revenue from gaming operations was just under HKD13.73 billion, up 198.4 percent from the prior-year first half.
Galaxy Entertainment’s first-half VIP rolling chip volume – a combination of junket play and “in-house premium direct,” a reference to house-managed VIP play – was up 134.7 percent year-on-year, at HKD50.60 billion.
Veteran VIP gambling trade representative Kwok Chi Chung had confirmed to GGRAsia in June that a Macau-based gaming promoter – or ‘junket’ – controlled by him, had access to a VIP-play gaming zone at Galaxy Macau on Cotai
In the first six months this year, group-wide mass table drop – including cash chips purchased at the cage – was nearly HKD46.93 billion, up 233.5 percent year-on-year.
‘Strong recovery’ at Galaxy Macau
JP Morgan Securities (Asia Pacific) Ltd said in a Thursday note after the results, that Galaxy Entertainment’s mass gross gaming revenue (GGR) “grew 28 percent quarter-on-quarter” relative to the selected results issued by the casino group for the three months to March 31.
That meant such GGR improved to “92 percent of pre-Covid levels, modestly outperforming the industry’s 88 percent” comeback. This was “thanks to strong recovery at its flagship Galaxy Macau – that grew 27 percent quarter-on-quarter to hit 101 percent of pre-Covid levels,” said the brokerage.
Electronic gaming volume was HKD20.20 billion, an increase of 187.8 percent on the same period a year earlier.
Group-wide adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) – including share of results of joint ventures and associated companies – was HKD4.38 billion.
For the first six months of last year, such adjusted EBITDA was HKD191.0 million.
The group’s total cash and bank balances – including fixed deposits – were just under HKD13.17 billion as of June 30 compared to HKD14.01 billion on December 31 last year.
Galaxy Entertainment’s total borrowings at the end of the first half were HKD2.35 billion, versus just under HKD7.51 billion at the end of the calendar year 2022.
Wednesday marked a “soft” opening in terms of the public’s access to the new Raffles at Galaxy Macau hotel, which has approximately 450 suites. But for now, the hotel accommodation is still only for “invited guests”, and only limited facilities can be used by the public at large.
Galaxy Entertainment confirmed in its Thursday filing that in July, as part of Phase 3 of Galaxy Macau, the group “opened our new Horizon Premium Club”.
Banking group Citi mentioned in a July note that Horizon Premium Club was a “premium mass” gambling facility within the tower housing Raffles at Galaxy Macau. The institution said the gaming zone was “already appealing to a lot of the Grade-A players in the market”.
(Updated 3.36pm, Aug 17)
