Galaxy Entertainment Group Selected Unaudited Q1 2024
Financial Data
Galaxy Entertainment Group (“GEG”, “Company” or the “Group”) (HKEx
stock code: 27) today reported results for the three-month period
ended 31 March 2024. (All amounts are expressed in Hong Kong
dollars unless otherwise stated)
Dr. Lui Che Woo, Chairman of GEG
said:
“Thank you for the opportunity to provide you
with a broad market overview and a review of the financial
performance of GEG in Q1 2024. During Q1 2024, we made
substantial adjustments to Galaxy MacauTM’s gaming floor, in the
shorter term this was disruptive for the month of January and the
early part of February. The renovation was completed just prior to
Chinese New Year. With the completion of this renovation, we have
seen a significant improvement in the flow of customer traffic
across the entire floor.
Across our portfolio, we are in the process of
implementing smart tables which will drive further efficiency
across the gaming floor. Additionally, we are updating our slot
machine products and we are working on a range of upgrades to
StarWorld Macau.
Moving onto our financial performance, the Group
Net Revenue in Q1 2024 was $10.6 billion, up 50% year-on-year and
up 2% quarter-on-quarter; Adjusted EBITDA was $2.8 billion, up 49%
year-on-year and up 1% quarter-on-quarter. We were particularly
encouraged with our casino performance over the May Golden Week and
post the reconfiguration of Galaxy MacauTM’s gaming floor.
Our balance sheet remained healthy and liquid.
As of Q1 2024, cash and liquid investments were $26.4 billion and
the net position was $25.0 billion after debt of $1.4 billion. We
recently paid the previously announced special dividend of $0.30
per share on 26 April 2024.
We were pleased to announce the addition of the
Group’s tenth hotel brand – Capella Hotels and Resorts. The
17-storey Capella at Galaxy Macau is expected to open in mid-2025
and offers approximately 100 ultra-luxury sky villas and suites.
This represents our continued commitment to delivering unparalleled
experiential luxury to our guests in Macau and supporting the
Government’s vision to develop Macau into the World Centre of
Tourism and Leisure.
We are very pleased to welcome the 75th
anniversary of the founding of the People’s Republic of China and
the 25th anniversary of Macau’s return to the Motherland this year.
We hope that the industry will continue to receive the full support
of the Central Government and the Macau SAR Government. As always
GEG will support these important milestones with a range of
supportive promotional activities and events. And we are pleased to
see that all those new initiatives on expanding Individual Visit
Scheme (IVS) and visa policies may increase tourism to Macau.
Finally, 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.”
Q1 2024 RESULTS HIGHLIGHTS
GEG: Well Positioned
for Future Growth
- Q1 Group Net Revenue of $10.6
billion, up 50% year-on-year and up 2% quarter-on-quarter
- Q1 Group Adjusted EBITDA of $2.8
billion, up 49% year-on-year and up 1% quarter-on-quarter
- Played lucky which increased
Adjusted EBITDA by approximately $63 million, normalized Adjusted
EBITDA of $2.8 billion, up 50% year-on-year and down 5%
quarter-on-quarter
- Latest twelve months Adjusted
EBITDA of $10.9 billion, up 1,297% year-on-year and up 9%
quarter-on-quarter
Galaxy
MacauTM: Well Positioned for
Future Growth
- Q1 Net Revenue of $8.3 billion, up
55% year-on-year and up 2% quarter-on-quarter
- Q1 Adjusted EBITDA of $2.6 billion,
up 42% year-on-year and up 2% quarter-on-quarter
- Played lucky which increased
Adjusted EBITDA by approximately $48 million, normalized Adjusted
EBITDA of $2.6 billion, up 44% year-on-year, and down 4%
quarter-on-quarter
- Hotel occupancy for Q1 across the
seven hotels was 97%
StarWorld Macau: Well
Positioned for Future Growth
- Q1 Net Revenue of $1.4 billion, up
46% year-on-year and up 9% quarter-on-quarter
- Q1 Adjusted EBITDA of $435 million,
up 101% year-on-year and up 23% quarter-on-quarter
- Played lucky which increased
Adjusted EBITDA by approximately $15 million, normalized Adjusted
EBITDA of $420 million, up 94% year-on-year, and up 20%
quarter-on-quarter
- Hotel occupancy for Q1 was
100%
Broadway Macau™, City Clubs and Construction Materials
Division (“CMD”)
- Broadway Macau™: Q1 Adjusted EBITDA
was $4 million, versus $(10) million in Q1 2023 and $(2) million in
Q4 2023
- City Clubs: Q1 Adjusted EBITDA was
$4 million, up 33% year-on-year and up 33% quarter-on-quarter
- CMD: Q1 Adjusted EBITDA was $110
million, up 9% year-on-year and down 46% quarter-on-quarter
Balance Sheet: Healthy and Liquid
Balance Sheet
- As at 31 March 2024, cash and
liquid investments were $26.4 billion and the net position was
$25.0 billion after debt of $1.4 billion
- Paid a special dividend of $0.30 per share on 26 April
2024
Development Update: Opening Capella at Galaxy Macau in
mid-2025; Ramping up GICC, Galaxy Arena, Raffles at Galaxy Macau
and Andaz Macau; Progressing with Phase 4
- Announced the opening of Capella at
Galaxy Macau in mid-2025
- Cotai Phase 3 – Ramping up GICC,
Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau
- Cotai Phase 4 – Our efforts are
firmly focused on the development of Phase 4. Phase 4 has a strong
focus on non-gaming, primarily targeting MICE, entertainment,
family facilities and also includes gaming
Macau Market Overview
Based on DICJ reporting, Macau’s GGR for Q1 2024
was $55.7 billion, up 65% year-on-year and up 6%
quarter-on-quarter. In Q1 2024, visitor arrivals to Macau were 8.9
million, up 79% year-on-year, recovering to 86% in the same quarter
of 2019. Overnight visitors were 4.1 million, up 55% year-on-year.
Mainland visitor arrivals were 6.3 million, up 94% year-on-year.
55% of the Mainland visitors were from the IVS. The Central
Government continues to strongly support Macau this is evidenced by
the recent expansion of the existing IVS to include an additional
10 cities. This brings the total number of Chinese cities under the
IVS to 59 cities, with a combined total population of over 490
million.
Further, The National Immigration Administration
of China introduced new measures for Mainlanders including
residents from 20 large cities to be able to update or reissue
their travel documents entirely online, Mainlanders who participate
in exhibitions or art performances can apply “other” visa type for
multiple-entry visits to Macau for one year, and multi-entry tour
visas within 7 days for Mainlanders who participated in
Hengqin-Macau group tours. These new measures were effective from 6
May 2024.
Group Financial Results
In Q1 2024, the Group posted Net Revenue of
$10.6 billion, up 50% year-on-year and up 2% quarter-on-quarter.
Group Adjusted EBITDA was $2.8 billion, up 49% year-on-year and up
1% quarter-on-quarter. Latest twelve months Adjusted EBITDA of
$10.9 billion, up 1,297% year-on-year and up 9%
quarter-on-quarter.
In Q1 2024, GEG played lucky in its gaming
operation which increased its Adjusted EBITDA by approximately $63
million. Normalized Adjusted EBITDA was $2.8 billion, up 50%
year-on-year and down 5% quarter-on-quarter.
Summary Table of GEG Q1 2024 Adjusted
EBITDA and Adjustments:
|
in HK$'m |
Q1 2023 |
Q4 2023 |
Q1 2024 |
YoY |
QoQ |
|
|
Adjusted EBITDA |
1,907 |
2,807 |
2,835 |
49% |
1% |
|
|
Luck1 |
59 |
(103) |
63 |
- |
- |
|
|
Normalized Adjusted EBITDA |
1,848 |
2,910 |
2,772 |
50% |
-5% |
|
The Group’s total GGR in Q1 2024 was $9.6
billion, up 59% year-on-year and up 4% quarter-on-quarter. Mass GGR
was $7.7 billion, up 57% year-on-year and down 1%
quarter-on-quarter. Rolling chip GGR was $1.3 billion, up 64%
year-on-year and up 43% quarter-on-quarter. Electronic GGR was $600
million, up 78% year-on-year and up 18% quarter-on-quarter.
|
Group Key Financial Data |
|
|
|
| (HK$'m) |
|
|
|
| |
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Revenues: |
|
|
|
|
Net Gaming |
5,323 |
7,961 |
8,181 |
|
Non-gaming |
1,033 |
1,580 |
1,606 |
|
Construction Materials |
698 |
778 |
765 |
| Total Net Revenue |
7,054 |
10,319 |
10,552 |
| |
|
|
|
| Adjusted EBITDA |
1,907 |
2,807 |
2,835 |
| |
|
|
|
|
Gaming Statistics2 |
|
|
|
|
(HK$'m) |
|
|
|
|
|
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Rolling
Chip Volume3 |
21,548 |
34,599 |
38,457 |
| Win Rate
% |
3.7% |
2.6% |
3.4% |
| Win |
794 |
909 |
1,299 |
|
|
|
|
|
| Mass
Table Drop4 |
20,675 |
30,696 |
31,471 |
| Win Rate
% |
23.9% |
25.5% |
24.6% |
| Win |
4,934 |
7,826 |
7,728 |
|
|
|
|
|
|
Electronic Gaming Volume |
8,576 |
16,383 |
19,043 |
| Win Rate
% |
3.9% |
3.1% |
3.1% |
| Win |
337 |
508 |
600 |
|
|
|
|
|
|
Total GGR Win5 |
6,065 |
9,243 |
9,627 |
Balance Sheet and Dividend
The Group’s balance sheet remains healthy and
liquid. As of 31 March 2024, cash and liquid investments were $26.4
billion and the net position was $25.0 billion after debt of $1.4
billion. This provides us with valuable flexibility in managing our
ongoing operations and allows us to continue investing in our
longer-term development plans. The Group paid a special dividend of
$0.30 per share on 26 April 2024.
Galaxy Macau™
Galaxy Macau™ is the primary contributor to
Group revenue and earnings. In Q1 2024, Galaxy Macau™’s Net Revenue
was $8.3 billion, up 55% year-on-year and up 2% quarter-on-quarter.
Adjusted EBITDA was $2.6 billion, up 42% year-on-year and up 2%
quarter-on-quarter. Adjusted EBITDA margin was 31% (Q1 2023:
35%).
Galaxy Macau™ played lucky in its gaming
operations which increased its Adjusted EBITDA by approximately $48
million. Normalized Q1 2024 Adjusted EBITDA was $2.6 billion, up
44% year-on-year and down 4% quarter-on-quarter.
The combined seven hotels occupancy was 97% for
Q1 2024.
| Galaxy
Macau™ Key Financial Data |
|
|
|
(HK$'m) |
|
|
|
| |
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Revenues: |
|
|
|
|
Net Gaming |
4,442 |
6,781 |
6,887 |
|
Hotel / F&B / Others |
470 |
1,046 |
1,056 |
|
Mall |
436 |
364 |
371 |
| Total Net Revenue |
5,348 |
8,191 |
8,314 |
| Adjusted EBITDA |
1,846 |
2,569 |
2,613 |
| Adjusted EBITDA Margin |
35% |
31% |
31% |
|
|
|
|
|
|
Gaming Statistics6 |
|
|
|
|
(HK$'m) |
|
|
|
|
|
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Rolling
Chip Volume7 |
21,548 |
33,874 |
37,433 |
| Win Rate
% |
3.7% |
2.6% |
3.3% |
| Win |
794 |
880 |
1,243 |
|
|
|
|
|
| Mass
Table Drop8 |
15,124 |
23,692 |
24,472 |
| Win Rate
% |
26.2% |
27.7% |
26.2% |
| Win |
3,970 |
6,570 |
6,406 |
|
|
|
|
|
|
Electronic Gaming Volume |
6,290 |
10,650 |
12,779 |
| Win Rate
% |
4.6% |
3.9% |
3.8% |
| Win |
291 |
418 |
487 |
|
|
|
|
|
|
Total GGR Win |
5,055 |
7,868 |
8,136 |
StarWorld Macau
In Q1 2024, StarWorld Macau’s Net Revenue was
$1.4 billion, up 46% year-on-year and up 9% quarter-on-quarter.
Adjusted EBITDA was $435 million, up 101% year-on-year and up 23%
quarter-on-quarter. Adjusted EBITDA margin was 32% (Q1 2023:
23%).
StarWorld Macau played lucky in its gaming
operations which increased its Adjusted EBITDA by approximately $15
million. Normalized Q1 2024 Adjusted EBITDA was $420 million, up
94% year-on-year and up 20% quarter-on-quarter.
Hotel occupancy was 100% for Q1 2024.
| StarWorld
Macau Key Financial Data |
|
|
|
(HK$'m) |
|
|
|
| |
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Revenues: |
|
|
|
| Net Gaming |
828 |
1,122 |
1,235 |
| Hotel / F&B / Others |
105 |
127 |
128 |
| Mall |
5 |
6 |
6 |
| Total Net Revenue |
938 |
1,255 |
1,369 |
| Adjusted EBITDA |
216 |
353 |
435 |
| Adjusted EBITDA Margin |
23% |
28% |
32% |
|
|
|
|
|
|
Gaming Statistics9 |
|
|
|
|
(HK$'m) |
|
|
|
|
|
Q1 2023 |
Q4 2023 |
Q1 2024 |
| Rolling
Chip Volume10 |
NIL |
725 |
1,024 |
| Win Rate
% |
NIL |
4.0% |
5.5% |
| Win |
NIL |
29 |
56 |
|
|
|
|
|
| Mass
Table Drop11 |
5,289 |
6,748 |
6,756 |
| Win Rate
% |
17.5% |
18.0% |
19.0% |
| Win |
926 |
1,217 |
1,283 |
|
|
|
|
|
|
Electronic Gaming Volume |
1,406 |
4,533 |
5,045 |
| Win Rate
% |
2.3% |
1.6% |
1.8% |
| Win |
32 |
72 |
93 |
|
|
|
|
|
|
Total GGR Win |
958 |
1,318 |
1,432 |
Broadway Macau™
Broadway Macau™ is a unique family friendly,
street entertainment and food resort supported by Macau SMEs. In Q1
2024, Broadway Macau™’s Net Revenue was $46 million, up 156%
year-on-year, up 21% quarter-on-quarter this follows the reopening
of Broadway Hotel. Adjusted EBITDA was $4 million, versus $(10)
million in Q1 2023 and $(2) million in Q4 2023.
City Clubs
In Q1 2024, City Clubs’ Net Revenue was $58
million, up 12% year-on-year and up 2% quarter-on-quarter. Adjusted
EBITDA was $4 million, up 33% year-on-year and up 33%
quarter-on-quarter.
Construction Materials Division
(“CMD”)
In Q1 2024, CMD was seasonally impacted by
Chinese New Year, where many construction workers travel to their
home province resulting in the seasonal shutdown of construction
sites. For the quarter, CMD delivered Adjusted EBITDA of $110
million, up 9% year-on-year and down 46% quarter-on-quarter.
Development Update
Galaxy Macau™ and StarWorld Macau
We continue to make ongoing progressive
enhancements to our resorts to ensure that they remain competitive
and appealing to our guests with a particular focus on adding new
and innovative F&B and retail offerings.
At StarWorld Macau we are evaluating a range of
major upgrades, that includes the main gaming floor, the lobby
arrival experience and increasing the F&B options.
Cotai – The Next Chapter
We are pleased to announce the opening of
Capella at Galaxy Macau in mid-2025. The 17-storey hotel offers
approximately 100 ultra-luxury sky villas and suites. Each Sky
Villa features a light-filled balcony with a transparent
infinity-edge pool, outdoor lounge, sunroom and hidden winter
garden, among others. Capella at Galaxy Macau promises to bring a
new level of elegant luxury to Macau.
We were ramping up GICC, Galaxy Arena, Raffles
at Galaxy Macau and Andaz Macau. We are now firmly focused on the
development of Phase 4, which is already well under way. Phase 4
will include multiple high-end hotel brands new to Macau, together
with a 4000-seat theater, extensive F&B, retail, non-gaming
amenities, landscaping, a water resort deck and a casino. Phase 4
is approximately 600,000 square meters of development and is
scheduled to complete in 2027. We will continue to adjust the
development timeline in accordance with the market demand. We
remain highly confident about the future of Macau where Phases 3
& 4 will support Macau’s vision of becoming a World Centre of
Tourism and Leisure.
Selected Major Awards in Q1 2024
|
AWARD |
PRESENTER |
|
GEG |
|
|
Sustainability Award |
International Gaming Awards 2024 |
|
GALAXY MACAUTM |
MICHELIN One-Star Restaurant
- 8½ Otto e Mezzo BOMBANA
- Lai Heen
Selected Restaurants
- Terrazza Italian Restaurant
- The Ritz-Carlton Cafe
- Saffron
|
The MICHELIN Guide Hong Kong Macau 2024 |
|
One Diamond – 8½ Otto e Mezzo BOMBANA |
Black Pearl Restaurant Guide 2024 |
|
Best Trendy Hotel – Andaz MacauBest Luxury Hotel – Raffles at
Galaxy Macau |
The Bund Design Hotel Awards |
|
The Most Anticipated New Hotel of the Year – Andaz Macau Luxury
Hotel of the Year – Raffles at Galaxy Macau |
HotelShare Media |
|
Newly Opened Hotel of the Year – Andaz Macau |
First Journey Media |
Five Star Hotel
- Galaxy HotelTM
- Hotel Okura Macau
- Banyan Tree Macau
- The Ritz-Carlton Macau
Five-Star Restaurant
- 8½ Otto e Mezzo BOMBANA
- Lai Heen
Five-Star Spa
- The Ritz-Carlton Spa, Macau
- Banyan Tree Spa Macau
|
2024 Forbes Travel Guide |
|
Best Hotel Spa – Banyan Tree Spa Macau |
Vogue Beauty Awards 2024 |
SCMP 100 Top Tables 2024 Award
- 8½ Otto e Mezzo BOMBANA
- Lai Heen
|
South China Morning Post |
|
STARWORLD MACAU |
|
MICHELIN Two-Star Restaurant – Feng Wei Ju |
The MICHELIN Guide Hong Kong Macau 2024 |
|
One Diamond – Feng Wei
Ju |
Black Pearl Restaurant Guide 2024 |
|
SCMP 100 Top Tables 2024 Award – Feng Wei Ju |
South China Morning Post |
|
CMD |
|
Caring Company Scheme – 20 Years Plus Caring Company Logo |
The Hong Kong Council of Social Service |
Outlook
During 2024 Macau has continued to experience an
ongoing recovery with both growth in visitor numbers and associated
revenues. The recovery has been predominately led by the premium
segment. We still see pent up demand from Mainland, particularity
for tourism, leisure and travel and Macau remains one of the top
choices for travel destinations by Mainland Chinese.
The Central Government continues to strongly
support Macau this is evidenced by the recent expansion of the
existing IVS to include an additional 10 cities. This brings the
total number of Chinese cities under the IVS to 59 cities, with a
combined total population of over 490 million.
Further, The National Immigration Administration
of China introduced new measures for Mainlanders including
residents from 20 large cities to be able to update or reissue
their travel documents entirely online, Mainlanders who participate
in exhibitions or art performances can apply “other” visa type for
multiple-entry visits to Macau for one year, and multi-entry tour
visas within 7 days for Mainlanders who participated in
Hengqin-Macau group tours. These new measures were effective from 6
May 2024.
Infrastructure to both access Macau and to move
throughout Macau continues to improve. In February the Jinhai
Avenue Bridge and Zhuhai Urban-Airport Intercity Railway Phase 2
were officially opened. This is a new bridge that directly connect
the Zhuhai airport to Hengqin Island and allows cars and trains to
travel from the Zhuhai airport to Hengqin in about 15 minutes.
The Zhuhai airport connects to 50 plus cities in
China and will have a capacity of 27.5 million passengers when
terminal 2 is completed this year. In comparison, the Macau airport
connects to 48 cities in China and has a capacity of 10 million
passengers. Within Macau the fourth cross-harbor bridge is expected
to open later this year and connects the peninsula to Cotai which
will allow easier travel within Macau.
The Macau Government through its tourism
authority in combination with the six concessionaires continues to
actively promote Macau both within Mainland China and Asia. To
support these initiatives GEG has opened overseas business
development offices in Tokyo and Seoul and is soon to open an
office in Bangkok. This is in-line with our commitment to the
Government to further increase the number and flow of high value
international visitors to Macau.
We continue to ramp up the newly opened Phase 3
development with a particular focus on events and entertainment
shows. The development of Phase 4 continues and will greatly expand
our capacity within Macau. We continue to remain confident in the
outlook for Macau and are committed to supporting the Macau
Government’s vision to develop Macau into the World Centre of
Tourism and Leisure.
About Galaxy Entertainment Group (HKEx stock code: 27)
Galaxy Entertainment Group Limited (“GEG” or the
“Company”) and its subsidiaries (“GEG” or the “Group”) is one of
the world’s leading resorts, hospitality and gaming companies. The
Group primarily develops and operates a large portfolio of
integrated resort, retail, dining, hotel and gaming facilities in
Macau. GEG is listed on the Hong Kong Stock Exchange and is a
constituent stock of the Hang Seng Index.
GEG through its subsidiary, Galaxy Casino S.A.,
is one of the three original concessionaires in Macau when the
gaming industry was liberalized in 2002. In 2022, GEG was awarded a
new gaming concession valid from January 1, 2023, to December 31,
2032. GEG has a successful track record of delivering innovative,
spectacular and award-winning properties, products and services,
underpinned by a “World Class, Asian Heart” service philosophy,
that has enabled it to consistently outperform the market in
Macau.
The Group operates three flagship destinations
in Macau: on Cotai, Galaxy Macau™, one of the world’s largest
integrated destination resorts, and the adjoining Broadway Macau™,
a unique landmark entertainment and food street destination; and on
the Peninsula, StarWorld Macau, an award-winning premium
property.
The Group has the largest development pipeline
of any concessionaire in Macau. When The Next Chapter of its Cotai
development is completed, GEG’s resorts footprint on Cotai will be
more than 2 million square meters, making the resorts,
entertainment and MICE precinct one of the largest and most diverse
integrated destinations in the world. GEG is also progressing plans
for its Hengqin project and we are also expanding our focus beyond
Hengqin and Macau to potentially include opportunities within the
rapidly expanding Greater Bay Area. These projects will help GEG
develop and support Macau in its vision of becoming a World Centre
of Tourism and Leisure.
In July 2015, GEG made a strategic investment in
Société Anonyme des Bains de Mer et du Cercle des Étrangers à
Monaco (“Monte-Carlo SBM”), a world renowned owner and operator of
iconic luxury hotels and resorts in the Principality of Monaco. GEG
continues to explore a range of international development
opportunities with Monte-Carlo SBM.
GEG is committed to delivering world class
unique experiences to its guests and building a sustainable future
for the communities in which it operates. For more information
about the Group, please visit www.galaxyentertainment.com
_____________________________
1 Reflects luck adjustments associated with our rolling chip
program. 2 Gaming statistics are presented before deducting
commission and incentives. 3 Represents sum of junket VIP and
inhouse premium direct. 4 Mass table drop includes the amount
of table drop plus cash chips purchased at the cage. 5 Total
GGR win includes gaming win from City Clubs. 6 Gaming
statistics are presented before deducting commission and
incentives. 7 Represents sum of junket VIP and inhouse premium
direct. 8 Mass table drop includes the amount of table drop
plus cash chips purchased at the cage. 9 Gaming statistics are
presented before deducting commission and incentives. 10
Represents inhouse premium direct. 11 Mass table drop includes
the amount of table drop plus cash chips purchased at the cage.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8d51506d-da5a-47fc-9a73-4352f900e65a
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