Galaxy reports Q3 results with an 11% year-on-year increase in net revenue

November 8, 2024

Author: Maria Dimitrova

Galaxy Entertainment Group (GEG) Reports Strong Q3 Results with 11% Year-on-Year Revenue Growth

Galaxy Entertainment Group (GEG) delivered a “solid” performance in the third quarter, seeing a 11% year-on-year rise in net revenues, despite a slight 2% dip compared to the previous quarter.

Between July and September, GEG recorded net revenues of HK$10.7 billion (£1.066 billion/€1.283 billion/$1.38 billion), while adjusted EBITDA grew 6% year-on-year to HK$2.9 billion (US$373 million), though it dropped 7% quarter-on-quarter due to unfavorable play.

Chairman Lui Che Woo described GEG’s balance sheet as “healthy and liquid,” positioning the Macau concessionaire well for both local and international expansion. GEG is advancing the Galaxy Macau Phase 4 development, which will feature several luxury hotel brands, a 4,000-seat theater, a water resort deck, and a new casino. This HK$43 billion project will include the Capella at Galaxy Macau, set to open in 2025. On October 25, GEG paid an interim dividend of HK$0.50 per share.

Golden Week Boosts Q4 Outlook

Lui pointed to strong visitation during Golden Week as a positive indicator for Q4. Macau welcomed nearly one million visitors during the seven-day holiday, with daily arrivals at almost 102% of pre-pandemic levels and hotel occupancy averaging 95%.

Macao News reported that property-specific net revenues were HK$8.4 billion for Galaxy Macau, HK$1.3 billion for StarWorld Macau, and HK$62 million for Broadway Macau, with Galaxy Macau hotels achieving a 98% occupancy rate from July to September.

In alignment with Macau’s international tourism initiatives, GEG recently opened a new overseas business development office in Bangkok, adding to its locations in Tokyo and Seoul.

Growth Potential in Q4 and Beyond

Seaport Research Partners analyst Vitaly Umansky commented that GEG has entered the fourth quarter on a strong note, though he expects growth to stabilize in the coming months. Umansky highlighted Galaxy’s competitive advantage through its scale, extensive entertainment offerings, and premium services. Large events at Galaxy Arena, Macau’s largest indoor venue with a 16,000-seat capacity, are likely to drive continued share gains for GEG.

“With a re-focused marketing strategy and new digital gaming tables ready ahead of Chinese New Year, we anticipate Galaxy Macau’s growth to sustain into 2025,” Umansky added.

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