Q3 2024 Group Adjusted EBITDA of $2.9 Billion
up 6% Year-on-Year and Down 7% Quarter-on-Quarter
Paid an Interim Dividend of $0.50 Per Share on 25 October 2024
Continues fit out Capella at Galaxy Macau & Construction of Phase 4
Ramping up Galaxy International Convention Center and Galaxy Arena
Well Advanced Deploying Smart Tables Across our Resorts
HONG KONG, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Galaxy Entertainment Group ("GEG”, "Company” or the "Group”) (HKEx stock code: 27) today reported results for the three-month period ended 30 September 2024. (All amounts are expressed in Hong Kong dollars unless otherwise stated)
Dr. Lui Che Woo, Chairman of GEG said:
"Today I am pleased to report the third quarter results for the Group in 2024. In Q3 2024 Group Net Revenue increased 11% year-on-year to $10.7 billion and Adjusted EBITDA increased 6% year-on-year to $2.9 billion, played unlucky in Q3 which decreased Adjusted EBITDA by approximately $165 million.
For the recent National Day Golden Week holiday, we were pleased that Macau recorded a total of 993,117 visitor arrivals. The daily average number of visitor arrivals during the seven-day period reached nearly 102% of the corresponding period in pre-pandemic 2019. Macau hotels' average guestroom occupancy stood at 95% during the period.
Our balance sheet continued to be healthy and liquid with total cash and liquid investments of $28.6 billion and the net position was $27.4 billion after debt of $1.2 billion. Our solid balance sheet and cash flow from operations allows us to return capital to shareholders through dividends, fund our development pipeline and pursue our international expansion ambitions. On 25 October 2024, we paid the previously announced interim dividend of $0.50 per share. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the Company.
On the development front, we continue to move forward with the fitting out of the Capella at Galaxy Macau and Phase 4, which has a strong focus on non-gaming, primarily targeting entertainment, family facilities and includes gaming.
We were very pleased to celebrate the 75th anniversary of the founding of the People's Republic of China and are pleased to welcome the 25th anniversary of Macau's return to the Motherland this December. Furthermore, we congratulate Mr. Sam Hou Fai who was elected as the new Chief Executive of Macau SAR.
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.”
Q3 2024 RESULTS HIGHLIGHTS
GEG: Well Positioned for Future Growth
Q3 Group Net Revenue of $10.7 billion, up 11% year-on-year and down 2% quarter-on-quarterQ3 Group Adjusted EBITDA of $2.9 billion, up 6% year-on-year and down 7% quarter-on-quarterPlayed unlucky in Q3 which decreased Adjusted EBITDA by approximately $165 million, normalized Q3 Adjusted EBITDA of $3.1 billion, up 7% year-on-year and down 3% quarter-on-quarterLatest twelve months Adjusted EBITDA of $11.8 billion, up 68% year-on-year and up 1% quarter-on-quarter Galaxy Macau™: Well Positioned for Future Growth
Q3 Net Revenue of $8.4 billion, up 10% year-on-year and down 3% quarter-on-quarterQ3 Adjusted EBITDA of $2.6 billion, flat year-on-year and down 8% quarter-on-quarterPlayed unlucky in Q3 which decreased Adjusted EBITDA by approximately $180 million, normalized Q3 Adjusted EBITDA of $2.7 billion, up 2% year-on-year and down 3% quarter-on-quarterHotel occupancy for Q3 across the seven hotels was 98% StarWorld Macau: Well Positioned for Future Growth
Q3 Net Revenue of $1.3 billion, up 9% year-on-year and up 1% quarter-on-quarterQ3 Adjusted EBITDA of $396 million, up 14% year-on-year, up 2% quarter-on-quarterPlayed lucky in Q3 which increased Adjusted EBITDA by approximately $15 million, normalized Q3 Adjusted EBITDA of $381 million, up 9% year-on-year and up 7% quarter-on-quarterHotel occupancy for Q3 was 100% Broadway Macau™, City Clubs and Construction Materials Division ("CMD”)
Broadway Macau™: Q3 Adjusted EBITDA was $11 million, versus $(14) million in Q3 2023 and $8 million in Q2 2024City Clubs: Q3 Adjusted EBITDA was $6 million, up 20% year-on-year and up 20% quarter-on-quarterCMD: Q3 Adjusted EBITDA was $214 million, up 30% year-on-year and down 16% quarter-on-quarter Balance Sheet: Healthy and Liquid Balance Sheet
As at 30 September 2024, cash and liquid investments were $28.6 billion and the net position was $27.4 billion after debt of $1.2 billionPaid an interim dividend of $0.50 per share on 25 October 2024 Development Update: Opening Capella at Galaxy Macau in mid-2025; Ramping up Galaxy International Convention Center ("GICC”), Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau; Progressing with Phase 4 Announced the opening of Capella at Galaxy Macau in mid-2025Cotai Phase 3 - Ramping up GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz MacauCotai Phase 4 - Our efforts are firmly focused on the development of Phase 4. Phase 4 has a strong focus on non-gaming, primarily targeting entertainment, family facilities and also includes gaming
Market Overview
Based on DICJ reporting, Macau's Gross Gaming Revenue ("GGR”) for Q3 2024 was $54.0 billion, up 14% year-on-year and down 1% quarter-on-quarter. In Q3 2024, visitor arrivals to Macau were 9.2 million, up 11% year-on-year and up 17% quarter-on-quarter. Visitor arrivals from the Mainland were 6.7 million, up 15% year-on-year and up 27% quarter-on-quarter. In the first three quarters, visitors from Mainland China up 36% year-on-year and visitor arrivals from the 10 cities that were newly added to the Individual Visit Scheme (IVS) surged by 54% year-on-year. Further, international visitors were up 95% for the same period.
Group Financial Results
In Q3 2024, the Group posted Net Revenue of $10.7 billion, up 11% year-on-year and down 2% quarter-on-quarter. Adjusted EBITDA was $2.9 billion, up 6% year-on-year and down 7% quarter-on-quarter. Galaxy Macau™'s Adjusted EBITDA was $2.6 billion, flat year-on-year and down 8% quarter-on-quarter. StarWorld Macau's Adjusted EBITDA was $396 million, up 14% year-on-year and up 2% quarter-on-quarter. Broadway Macau™'s Adjusted EBITDA was $11 million, versus $(14) million in Q3 2023 and $8 million in Q2 2024. Latest twelve months Adjusted EBITDA for the Group was $11.8 billion, up 68% year-on-year and up 1% quarter-on-quarter.
During Q3 2024, GEG played unlucky in its gaming operations which decreased Adjusted EBITDA by approximately $165 million. Normalized Adjusted EBITDA was $3.1 billion, up 7% year-on-year and down 3% quarter-on-quarter.
Summary Table of GEG Q3 2024 Adjusted EBITDA and Adjustments:
in HK$'mQ3 2023Q2 2024Q3 2024YoYQoQAdjusted EBITDA2,7683,1762,9406%-7%Luck1(122)(20)(165)--Normalized Adjusted EBITDA2,8903,1963,1057%-3%
The Group's total GGR in Q3 2024 was $10.2 billion, up 16% year-on-year and down 2% quarter-on-quarter. Mass GGR was $8.4 billion, up 13% year-on-year and up 1% quarter-on-quarter. VIP GGR was $1.1 billion, up 35% year-on-year and down 21% quarter-on-quarter. Electronic GGR was $666 million, up 35% year-on-year and up 1% quarter-on-quarter.
Group Key Financial Data (HK$'m)Q3 2023Q2 2024Q3 2024Revenues: Net Gaming7,4178,5958,197Non-gaming1,5201,4831,666Construction Materials713840805Total Net Revenue9,65010,91810,668Adjusted EBITDA2,7683,1762,940 Gaming Statistics2 (HK$'m) Q3 2023Q2 2024Q3 2024Rolling Chip Volume332,45946,15544,459Win Rate %2.5%3.0%2.5%Win8131,3911,100 Mass Table Drop429,90632,37031,726Win Rate %24.9%25.6%26.4%Win7,4418,2918,386 Electronic Gaming Volume14,29822,37026,503Win Rate %3.4%2.9%2.5%Win492658666 Total GGR Win58,74610,34010,152
Balance Sheet and Dividend
The Group's balance sheet remains healthy and liquid. As of 30 September 2024, cash and liquid investments were $28.6 billion and the net position was $27.4 billion after debt of $1.2 billion. Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders via dividends and to fund our development pipeline. The Group paid an interim dividend of $0.50 per share on 25 October 2024.
Galaxy Macau™
Galaxy Macau™ is the primary contributor to the Group's revenue and earnings. Net Revenue in Q3 2024 was $8.4 billion, up 10% year-on-year and down 3% quarter-on-quarter. Adjusted EBITDA as $2.6 billion, flat year-on-year and down 8% quarter-on-quarter.
Galaxy Macau™ played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately $180 million in Q3 2024. Normalized Adjusted EBITDA was $2.7 billion, up 2% year-on-year and down 3% quarter-on-quarter.
Hotel occupancy for Q3 2024 across the seven hotels was 98%.
Galaxy Macau™ Key Financial Data (HK$'m) Q3 2023Q2 2024Q3 2024Revenues: Net Gaming6,2587,3476,934Hotel / F&B / Others1,0049711,125Mall366326347Total Net Revenue7,6288,6448,406 Adjusted EBITDA2,5622,7822,557Adjusted EBITDA Margin34%32%30% Gaming Statistics6 (HK$'m) Q3 2023Q2 2024Q3 2024Rolling Chip Volume731,09044,57742,887Win Rate %2.5%2.9%2.4%Win7781,2871,027 Mass Table Drop822,81224,64724,591Win Rate %27.2%28.6%29.0%Win6,1977,0477,123 Electronic Gaming Volume10,18814,77216,743Win Rate %4.0%3.5%2.9%Win411524490 Total GGR Win7,3868,8588,640
StarWorld Macau
StarWorld Macau's Net Revenue in Q3 2024 was $1.3 billion, up 9% year-on-year, up 1% quarter-on-quarter. Adjusted EBITDA was $396 million, up 14% year-on-year, up 2% quarter-on-quarter.
StarWorld Macau played lucky in its gaming operations which increased its Adjusted EBITDA by approximately $15 million in Q3 2024. Normalized Adjusted EBITDA was $381 million, up 9% year-on-year and up 7% quarter-on-quarter.
Hotel occupancy for Q3 2024 was 100%.
StarWorld Macau Key Financial Data (HK$'m) Q3 2023Q2 2024Q3 2024Revenues: Net Gaming1,1011,1901,205Hotel / F&B / Others121128126Mall656Total Net Revenue1,2281,3231,337 Adjusted EBITDA347390396Adjusted EBITDA Margin28%29%30% Gaming Statistics9 (HK$'m) Q3 2023Q2 2024Q3 2024Rolling Chip Volume101,3691,5781,572Win Rate %2.6%6.5%4.7%Win3510473 Mass Table Drop116,8307,4676,884Win Rate %17.6%16.2%17.8%Win1,2041,2071,226 Electronic Gaming Volume2,9816,3258,511Win Rate %2.1%1.8%1.8%Win62113155 Total GGR Win1,3011,4241,454
Broadway Macau™
Broadway Macau™ is a unique family friendly, street entertainment and food resort supported by Macau SMEs. The property's Net Revenue in Q3 2024 was $62 million, up 158% year-on-year and up 15% quarter-on-quarter. Adjusted EBITDA was $11 million, versus $(14) million in Q3 2023 and $8 million in Q2 2024.
City Clubs
In Q3 2024, City Clubs Adjusted EBITDA was $6 million, up 20% year-on-year and up 20% quarter-on-quarter.
Construction Materials Division
CMD contributed Adjusted EBITDA of $214 million in Q3 2024, up 30% year-on-year and down 16% quarter-on-quarter. Q3 2024 was seasonally softer due to rainstorms and typhoons which adversely impact construction works.
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. We have completed the upgrade of Level 3 and StarWorld Macau now hosts one of the largest-scale Live Table Games (LTG) terminals in Macau.
Cotai - The Next Chapter
The targeted opening of Capella at Galaxy Macau is in mid-2025. The 17-storey property 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 elegance and luxury to Macau.
We are 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 an up to 5000-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 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 2024
AWARD PRESENTERGEG 2024 IAG Academy IR Awards
Best Integrated Resort - Galaxy Macau™Best Overall F&B Offering by an IR - Galaxy Macau™Best Hotel Attached to an IR - Raffles at Galaxy Macau Inside Asian Gaming2024 PATA Gold Award - Gold Award for Youth Empowerment InitiativePacific Asia Travel AssociationSustainability AwardInternational Gaming Awards 2024Casino Operator of the YearGlobal Gaming Awards Asia-Pacific 20242024 Macao International Environmental Co-operation Forum & Exhibition - Green Booth AwardMacau Fair & Trade AssociationGALAXY MACAU™MICHELIN One-Star Restaurant
8½ Otto e Mezzo BOMBANALai Heen Selected Restaurants Terrazza Italian RestaurantThe Ritz-Carlton CafeSaffron The MICHELIN Guide Hong Kong Macau 2024Five Star Hotel
Galaxy Hotel™Hotel Okura MacauBanyan Tree MacauThe Ritz-Carlton Macau Five-Star Restaurant
8½ Otto e Mezzo BOMBANALai Heen Five-Star Spa The Ritz-Carlton Spa, MacauBanyan Tree Spa Macau 2024 Forbes Travel GuideBlack Pearl Restaurant Guide 2024 - One Diamond - 8½ Otto e Mezzo BOMBANAMei TuanMacau Energy Saving Activity 2023 - Energy Saving Concept Award - Galaxy Macau™CEM - Companhia de Electricidade de MacauEarthCheck Gold Certification
Banyan Tree Macau EarthCheck Silver Certification Galaxy Hotel™Hotel Okura Macau EarthCheckMacao Green Hotel Awards - Gold Award - Galaxy Hotel™Environmental Protection Bureau of the Macau SAR GovernmentSTARWORLD MACAU MICHELIN Two-Star Restaurant - Feng Wei JuThe MICHELIN Guide Hong Kong Macau 2024Black Pearl Restaurant Guide 2024 - One Diamond - Feng Wei JuMei TuanBROADWAY MACAU™Macau Energy Saving Activity 2023 - Energy Saving Award (Hotel Group B) - 1st Runner Up - Broadway Macau™CEM - Companhia de Electricidade de MacauCMDCaring Company Scheme - 20 Years Plus Caring Company LogoThe Hong Kong Council of Social Service
Outlook
In late September, the People's Bank of China announced a range of measures to support the economy. These including a reduction in the banking system's reserve ratio, a cut in the benchmark rate, a reduction of rates on existing mortgages, increased liquidity to brokers and insurance companies and an increase in listed state-owned enterprise share buybacks to stimulate the Chinese economy and stock market. We welcome these stimulation policies which are positive for consumer and investment sentiments.
In May, the Central Government further expanded the Individual Visit Scheme (IVS) to 59 eligible cities with a total combined population of approximately 500 million people. Also, the Macau Government continues to explore international tourist markets, especially in Northeast Asia, Southeast Asia and South Asia. The Government continues to improve infrastructure, including airport expansion and an improved international flight network, to facilitate greater access for international visitors.
We were pleased that Macau's fourth sea bridge opened to traffic on 1 October. The new bridge reduces travel time between Cotai and the Macau Peninsula. Furthermore, the Macau International Airport expansion and reclamation project will commence this year. It is estimated that the annual passenger capacity will increase to 15 million passengers, representing an increase of more than 50% over current capacity.
To enrich the tourism product offerings, we continue to ramp up our GICC and Galaxy Arena. In April, Galaxy Arena hosted the International Table Tennis Federation Men's and Women's World Cup Macao 2024. During National Day Golden Week, one of Hong Kong's famous singer Mr. Andy Lau held a series of concerts in Galaxy Arena. This resulted in driving additional customers across our resort facilities, including gaming, retail, F&B and hotels. Further we have scheduled a number of shows and entertainment events to be held in Q4 2024, including concerts, talk shows, opera and sporting events. One of the events is the UFC (Ultimate Fighting Championship) fight night which we believe will prove to be very popular.
In-line with our