Macau’s Galaxy Entertainment Group reported net revenues of HK$10.3 billion (US$1.32 billion) for the three months to 31 December 2023, jumping by 254% year-on-year and by 7% sequentially as it continues to rebound from the COVID years.
The result included gross gaming revenue of HK$9.24 billion (US$1.18 billion), up almost 6% compared with the September 2023 quarter.
Adjusted EBITDA of HK$2.8 billion (US$358 million) reversed a HK$163 million (US$20.8 million) loss in 4Q22 and was broadly in line with Q3, although GEG noted that it played unlucky to the tune of HK$103 million (US$13.2 million) for the quarter.
By segment, rolling chip volume was up 6.6% quarter-on-quarter to HK$34.6 billion (US$4.42 billion) with win of HK$909 million (US$116 million), while mass table drop grew by 2.6% to HK$30.7 billion (US$3.92 billion) with win of HK$7.83 billion (US$1.0 billion). Electronic gaming volume also grew by 14.6% to HK$16.4 billion (US$2.10 billion) with win of HK$508 million (US$64.9 million).
For FY23, GEG reported a 211% year-on-year increase in net revenues to HK$35.7 billion (US$4.56 billion) with GGR rising by 322% to HK$31.7 billion (US$4.10 billion). Adjusted EBITDA of HK$9.96 billion (US$1.27 billion) reversed a 2022 Adjusted EBITDA loss of HK$553 million (US$70.7 million).
GEG also provided some insight into its 1Q24 performance, noting that its 5,000 hotel rooms are enjoying near 100% occupancy, while mass gaming drop and revenues during the recent Chinese New Year holiday period reached 120% of 2019 levels.
“We continue to drive every segment of the business with a particular focus on the mass business and continue to allocate resources to their most efficient use,” said GEG Chairman, Dr Lui Che Woo, adding that the company would pay a special dividend of HK$0.30 per share on 26 April.
“We are the first Macau concessionaire to resume dividends and return capital to shareholders after the border reopened. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the company.
“Our solid balance sheet (with HK$23.5 billion in net cash) and cash flow from operations allows us to fund our development pipeline and pursue our international expansion ambitions.”
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