Macau reopening drives revenue up 211.0% at Galaxy in 2023

Galaxy Entertainment Group (GEG) reported a 211.0% increase in revenue to HKD35.68bn (£3.60bn/€4.21bn/US$4.56bn) during 2023, driven by the full reopening of the Macau gaming market.

Macau withdrew all remaining pandemic travel and quarantine restrictions in January 2023. This meant people could again travel freely to the region and visit its land-based casinos, including the Galaxy Macau.

This relaxation had a major impact on revenue not just on Galaxy but also other operators in the region. Revenue at the Galaxy Macau alone rocketed 274.3% year-on-year in 2023, with gaming revenue here up 312.1%.

There was also growth, if not a little more modest, across other operations in Macau. This was despite increased competition in the region, with chairman Lui Che Woo praising the 2023 performance.

“At GEG, 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,” Woo said. “Our efforts are reflected in full-year adjusted EBITDA growth. This was despite continuing competition in both Macau and regionally and a number of geo-political and economic issues that impacted consumer sentiment.”

Galaxy building for the future

The past year also saw Galaxy make progress with multiple development projects.

It opened the 450 all-suite Raffles at Galaxy Macau and premium mass Horizon Club, as well as both the Galaxy International Convention Centre (“GICC”) and Galaxy Arena. The Andaz Macau also fully opened prior to Chinese New Year 2024.

Work remains ongoing with phase four of development for a new integrated resort in Macau. Due to complete by 2027, this includes a new casino, multiple hotel brands, a theatre, retail facilities, non-gaming amenities, landscaping and a water resort deck.

“Non-gaming is focused on attracting a broader range of customers to our resorts, leveraging our existing facilities and growing the overall market,” Woo said. “These efforts will take time and we are doing our best.

“GEG has opened overseas offices in Tokyo and Seoul in 2023, and will soon be opening another office in Bangkok. The competition for high-value international tourists is significant and we will strive to support this government initiative.”

Mass growth in Macau

Breaking down the 2023 figures, group net gaming revenue at Galaxy increased 315.6% to $23.29bn. Non-gaming revenue hiked 167.0% to $5.40bn and construction material revenue edged up 3.8% to $3.00bn.

Revenue from Galaxy Macau amounted to $27.72bn, well clear of the $7.42bn in 2022 when pandemic restrictions impacted the region. Of this, $22.91bn was gaming revenue, $3.25bn non-gaming and $1.56bn construction materials.

StarWorld Macau revenue also increased 56.9% to $4.64bn, again helped by the removal of Covid-19 measures. Of this total, $4.15bn was attributed to gaming activity, up 339.6%.

In addition, revenue from the Broadway Macau entertainment and street resort jumped 72.0% to $103m, while City Clubs revenue increased 264.0% to $222m.

Galaxy did not provide a full breakdown of costs, tax and net profit for the year. However, it did reveal that revenue growth helped drive adjusted EBITDA up from a loss of $0.60bn in 2022 to a positive of $10.00bn for 2023.

Galaxy ends 2023 on a high with Q4 growth

As for the final quarter of the year, Galaxy also reported success in Q4. Group revenue for the three-month period reached $10.30bn, up 253.9% year-on-year.

Galaxy Macau revenue climbed 346.6% to $8.19bn in Q4, with StarWorld Macau also rising 410.2% to $1.26bn. Broadway Macau revenue for Q4 jumped 100.0% to $38m and City Clubs 185.0% to $57m.

Adjusted EBITDA for the fourth quarter amounted to $2.81bn, in contrast to the 2022 loss of $163m.

“I would like to thank all our team members who deliver ‘World Class, Asian Heart’ service each and every day and contribute to the success of the group,” Woo said.

Original Article