Galaxy Entertainment Group has reported gross gaming revenues of HK$13.7 billion (US$1.75 billion) for the first six months of 2023 combined, representing a 187% increase over the same period last year. The result also suggests GEG recorded a 26.0% sequential increase in GGR in 2Q23 to HK$7.65 billion (US$977 million) based on the company’s previously announced Q1 results.
The H1 result includes mass gaming revenue of HK$11.2 billion (US$1.43 billion), up 194% year-on-year, and rolling chip GGR of HK$1.7 billion (US$217 million), up 140%. GGR from electronic gaming machines grew by 228% to HK$780 million (US$100 million).
Having returned to profit in Q1, GEG improved again in the June quarter with Adjusted EBITDA rising 744% year-on-year and 30% sequentially to HK$2.47 billion (US$315 million). Adjusted EBITDA for the first six months combined reached HK$4.38 billion (US$559 million) – enough for the company to declare an interim dividend of HK$0.20 to be paid on 27 October 2023.
Galaxy Macau, which has been gradually opening facilities at its recently completed Phase 3 development in recent months, accounted for much of the company’s revenues in 2Q23, with GGR of HK$11.4 billion (US$1.46 billion) representing a 25.5% increase over the March quarter. This included mass GGR of HK$9.0 billion (US$1.15 billion), VIP GGR of HK$1.73 billion (US$221 million) and EGM GGR of HK$670 million (US$85.5 million).
At StarWorld, GGR grew by 30.9% to HK$1.25 billion (US$160 million) including HK$1.21 billion (US$154 million) in mass GGR and HK$48 million (US$6.1 million) in EGM revenues.
Meanwhile, entertainment and food resort Broadway Macau posted a 32% year-on-year increase in net revenues in 1H23 to HK$41 million (US$5.2 million), but still fell to an Adjusted EBITDA loss of HK$20 million (US$2.6 million), while City Clubs booked Adjusted EBITDA of HK$7 million (US$894,000) on a 391% increase in net revenues to HK$108 million (US$13.8 million).
“During the period Macau continued its business recovery and the Group’s primary focus was on operational execution, recruitment and project development,” said GEG Chairman, Dr Lui Che Woo.
“We believe that non-gaming is the future of Macau to drive a longer staying and more diverse visitor base which aligns with Macau Government’s vision of building Macau into a World Center of Tourism and Leisure. Our investment into world-class, non-gaming facilities such as the Galaxy International Convention Center and the Galaxy Arena supports this vision.
“Our vote of confidence in Macau is demonstrated by the fact that GEG is the first Macau concessionaire to resume dividends and return capital to shareholders after the border reopened.
“Our balance sheet continues to be exceptionally liquid and healthy. As of 30 June 2023, cash and liquid investments were HK$24.4 billion (US$3.12 billion) and net cash was HK$22.0 billion (US$2.81 billion). Our strong balance sheet provides us with valuable flexibility in managing business operations and supporting our development initiatives.”
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