GGRAsia – Galaxy Ent 3Q EBITDA up, mass revenue exceeds 2019 levels

Galaxy Ent 3Q EBITDA up, mass revenue exceeds 2019 levels

Nov 09, 2023 Newsdesk Latest News, Macau, Top of the deck

Macau casino operator Galaxy Entertainment Group Ltd reported third-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of just below HKD2.77 billion (US$354.2 million). The result was up 11.9 percent sequentially, and compared with a negative figure of HKD581 million in third-quarter 2022.

The firm gave the information in unaudited performance highlights, filed with the Hong Kong Stock Exchange on Thursday.

Third-quarter net revenue rose by 11.4 percent sequentially, to HKD9.65 billion. Such revenue was up 374.4 percent from the prior-year period.

The group’s third-quarter gross gaming revenue (GGR) was nearly HKD8.75 billion, up 14.2 percent quarter-on-quarter, and an 852.7-percent increase from a year ago.

Lui Che Woo, chairman of Galaxy Entertainment, was quoted in the announcement as saying: “From the business revenue perspective, we are very pleased to see a continuing ongoing recovery in both visitor arrivals and associated gaming revenue.”

The executive said Galaxy Entertainment’s mass-market gaming revenue “was approximately 102 percent when compared to 2019 levels,” before the onset of the Covid-19 pandemic.

“Galaxy Macau performed even better at 121 percent of 2019 levels, whilst StarWorld Macau continues to grow and was approximately 71 percent of 2019 levels,” stated Mr Lui.

Galaxy Entertainment’s third-quarter VIP rolling chip volume was up 11.7 percent quarter-on-quarter, at HKD32.46 billion.

Group-wide mass table drop was nearly HKD29.91 billion, up 13.9 percent year-on-year. Electronic gaming volume was HKD14.30 billion, a sequential increase of 23.0 percent.

The group’s flagship property, Galaxy Macau (pictured), produced net revenue of HKD7.63 billion in the three months to September 30, up 16.5 percent sequentially. The property recorded adjusted EBITDA of HKD2.56 billion, up 18.0 percent from the prior quarter.

As of September 30, Galaxy Entertainment’s cash and liquid investments were HKD24.8 billion and net cash was HKD23.3 billion. Total debt was HKD1.5 billion, which the firm said primarily reflected its “ongoing treasury yield management initiatives”.

The group paid a special dividend of HKD0.20 per share on October 27, which had been announced with its interim results.

Galaxy Entertainment opened part of its Phase 3 of its Galaxy Macau complex during the reporting period. The Raffles at Galaxy Macau hotel tower had a soft opening to the public in mid-August.

Andaz Macau, the second of the two new hotels in Phase 3 of the complex, launched on September 15, offering 700 rooms and suites. The accommodation is directly connected to Galaxy International Convention Center (GICC) and the 16,000-seat Galaxy Arena, both of which launched earlier this year.

In Thursday’s announcement, the casino firm said it was “now firmly focused on the development of Phase 4” of Galaxy Macau, which “is already well under way”.

Phase 4, scheduled to be completed in 2027, is to include “multiple high-end hotel brands,” as well as a 4000-seat theatre, retail and a water resort deck. “We will continue to adjust the development timeline in accordance with the market demand,” stated the company.