Galaxy Entertainment Group Reports Strong Q3 2024 Performance
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
Development of Capella at Galaxy Macau is ongoing
Galaxy International Convention Center and Galaxy Arena are on track for completion
Accelerating Smart Table Deployment Across Resorts
Galaxy Entertainment Group (GEG) has recently announced its financial results for the third quarter of 2024, showcasing considerable growth and resilience. For the period ending September 30, 2024, GEG reported a net revenue of approximately $10.7 billion, representing an 11% increase compared to the same quarter of the previous year. Adjusted EBITDA for the Group reached $2.9 billion, showing a yearly surge of 6%, although a slight decline of 7% was noted from the previous quarter.
Dr. Lui Che Woo, Chairman of GEG, expressed his satisfaction with the Q3 performance. He highlighted a robust 993,117 visitor arrivals recorded during the National Day holiday period in Macau, nearly matching pre-pandemic metrics from 2019. Additionally, the hotel occupancy rates in Macau averaged around 95% during this busy period, indicating strong demand and recovery in the tourism sector.
Financial Highlights for Q3 2024
Despite challenges in Q3, where GEG experienced a decrease in Adjusted EBITDA of roughly $165 million due to unfortunate gaming outcomes, the normalized Adjusted EBITDA was approximately $3.1 billion, which reflects a 7% increase compared to the same quarter in the previous year and only a 3% decline quarter-on-quarter. The healthy balance sheet backed up GEG's commitment to returning capital to shareholders, with an interim dividend of $0.50 per share paid on October 25, 2024.
Galaxy Macau™ Performance
Galaxy Macau™ contributed significantly to GEG's success, bringing in a net revenue of $8.4 billion in Q3 2024, up 10% year-on-year. The Adjusted EBITDA recorded was $2.6 billion, remaining flat year-on-year while experiencing an 8% decrease from the previous quarter. It is noteworthy that Galaxy Macau™ faced challenges that reduced Adjusted EBITDA by about $180 million. Nevertheless, the normalized figure stood at $2.7 billion, a modest 2% increase from the previous year.
StarWorld Macau’s Steady Growth
StarWorld Macau demonstrated a commendable performance during Q3 2024, with net revenue reaching $1.3 billion, which is a 9% increase year-on-year. The Adjusted EBITDA showcased significant improvement, hitting $396 million and representing a 14% rise compared to the same period last year. A remarkable 100% hotel occupancy rate was reported for StarWorld Macau, underlining its appeal among guests.
Expanded Development Initiatives
Moving forward, GEG is actively involved in enhancing its facilities and launching new projects. The ongoing construction of the Capella at Galaxy Macau is projected for completion by mid-2025, with an emphasis on providing upscale accommodations and entertainment options. The development of Phase 4 is also progressing, which will enhance the non-gaming offerings and amenities at GEG’s properties, aiming to attract a broader audience.
Galaxy’s Commitment to the Future
The Group remains steadfast in its commitment to sustainability and innovative enhancements across its resorts. Galaxy Arena will host an array of events in the upcoming quarters, including prominent concerts and sporting events. Moreover, GEG has started deploying smart tables across its resorts, marking a modernization effort to enhance guest experience.
Market Position and Future Outlook
With the continued expansion of the Individual Visit Scheme (IVS), GEG anticipates that the influx of visitors from new cities will add to the group’s growth potential. The enhancements being made to the infrastructure, along with a series of events and marketing initiatives, create an optimistic outlook for GEG. The Group actively seeks to strengthen its international presence by opening business development offices in key Asian cities.
GEG stands as a leader in resort and entertainment development, with aspirations to expand its influence further and contribute positively to the Macau economy. With a strong financial foundation and ongoing innovative projects, Galaxy Entertainment Group (HKEx stock code: 27) is well-positioned for future growth, aligning with the vision for Macau as a World Centre of Tourism and Leisure.
Frequently Asked Questions
What was the net revenue for Galaxy Entertainment Group in Q3 2024?
In Q3 2024, Galaxy Entertainment Group reported a net revenue of approximately $10.7 billion.
How much did GEG pay as an interim dividend?
The Group paid an interim dividend of $0.50 per share on October 25, 2024.
What were the challenges faced by Galaxy Macau in Q3 2024?
Galaxy Macau experienced challenges that resulted in a decrease of around $180 million in Adjusted EBITDA due to 'unlucky' gaming outcomes.
What innovative features is Galaxy Entertainment Group implementing across its resorts?
The Group is actively deploying smart tables as part of its modernization efforts across its resorts.
What does the future outlook look like for GEG?
GEG maintains a positive outlook supported by the expansion of tourism schemes, ongoing developments, and enhanced guest experiences in the upcoming quarters.
