Galaxy Entertainment Group reported on Wednesday that the group’s net revenue for 2023 skyrocketed by 211 per cent year-on-year to HKD35.7 billion (MOP36.7 billion/ US$4.6 billion), with adjusted EBITDA at HKD10 billion.
The group also announced its plan to distribute a special dividend of HKD0.30 per share on or around April 26, 2024, following a previous special dividend of HKD0.20 per share paid in October last year.
In a filing to the Hong Kong exchange today, the casino operator said that these special dividend distributions demonstrated its “continued confidence in the longer-term outlook of Macau and for the company”.
As of the end of last year, the group’s total cash and liquid investments amounted to HKD25 billion, while its net cash stood at HKD23.5 billion.
“Our solid balance sheet and cash flow from operations allows us to fund our development pipeline and pursue our international expansion ambitions,” said Lui Che Woo, chairman of Galaxy Entertainment.
In 2023, GEG kicked off several development projects, including the 450 all-suite Raffles at Galaxy Macau, the new premium mass Horizon Club, as well as the Galaxy International Convention Centre and Galaxy Arena.
Looking ahead, Galaxy announced its plans to complete the construction of Phase 4, spanning 600,000 square metres, by 2027.
This new development will introduce several high-end hotel brands to Macau, together with a 4,000-seat theatre, F&B and retail offerings, non-gaming amenities, a water resort deck, and a casino.
In line with the government’s pursuit of bigger international markets, GEG is planning for a new office in Bangkok, adding to its existing overseas offices in Tokyo and Seoul.
At its flagship property Galaxy Macau, the group is reconfiguring the main gaming floor to provide an enhanced customer experience and completing the construction of a new high-limit slot area and other amenities.
At StarWorld Macau, the group is evaluating a range of major upgrades, including enhancements to the main gaming floor and the lobby, as well as an increase in food and beverage options.
The casino operator logged almost 100 per cent occupancy across approximately 5,000 hotel rooms. Its mass gaming drop and revenue in the recent Chinese New Year accounted for 120 per cent of the 2019 level.
According to the full-year financial results report, Galaxy Macau, StarWorld Macau, and Broadway Macau achieved adjusted EBITDA of HKD9.1 billion, HKD1.3 billion, and HKD36 million, respectively, in 2023.
The group’s total gross gaming revenue on a management basis in 2023 was HKD31.7 billion, up 322 per cent compared to the previous year.
Lacklustre EBITDA recovery
The group’s net revenue for the fourth quarter last year was HKD10.3 billion, representing an increase of 7 per cent quarter-on-quarter. Adjusted EBITDA was HKD2.8 billion, the same as it was a quarter earlier.V
However, brokerage J.P. Morgan commented that Galaxy Entertinment’s Q4 profit growth was the slowest among the six gaming operators.
Also, the group’s EBITDA recovery stood at 75 per cent of the pre-Covid level, falling short of the industry’s average recovery rate, at 85 per cent of the 2019 level.
“The momentum in its mass/slot GGR (+5% q/q to be 4% above pre-COVID) failed to beat the industry’s (+11% q/q to be 5% above pre-COVID) despite new Phase III hotels that opened in 3Q,” analysts DS Kim, Mufan Shi and Selina Li wrote.
