Galaxy Entertainment Group (GEG) reported a “strong” third-quarter performance, with net revenues increasing by 11% compared to the same period last year, despite a 2% decline from the previous quarter.
From July to September, GEG posted net revenues of HK$10.7 billion (£1.066 billion/€1.283 billion/$1.38 billion), an 11% increase year-on-year, but a 2% decrease from the previous quarter.
Adjusted EBITDA climbed 6% from Q3 2023 to HK$2.9 billion (US$373 million), though it experienced a 7% quarter-on-quarter decline due to "unfavorable gaming outcomes."
Galaxy Chairman Lui Che Woo emphasized that the company's balance sheet remains "strong and well-funded," allowing GEG to focus on both local expansion and international opportunities.
GEG is advancing with Phase 4 of the Galaxy Macau development, covering 600,000 square meters. The HK$43 billion project will introduce several high-end hotel brands, a 4,000-seat theater, a water resort deck, and a new casino. The luxurious Capella at Galaxy Macau is set to open in 2025.
On October 25, 2024, the Hong Kong-listed company issued an interim dividend of HK$0.50 per share.
Golden Week a good harbinger
Lui highlighted strong Golden Week numbers in Macau as a positive indicator for the fourth quarter. The city saw 993,117 visitors during the seven-day holiday, with daily arrivals averaging nearly 102% of pre-pandemic figures. "Macau hotels achieved an average occupancy rate of 95% during this period," GEG stated.
Macao News reported property-specific net revenues: HK$8.4 billion from Galaxy Macau, HK$1.3 billion from StarWorld Macau, and HK$62 million from Broadway Macau. From July to September, Galaxy Macau’s seven hotels had a 98% occupancy rate, exceeding the citywide average of 95%.
To support Macau's push for more international tourists, GEG has launched a new "overseas business development" office in Bangkok, complementing existing offices in Tokyo and Seoul.
Poised for growth
Seaport Research Partners analyst Vitaly Umansky confirmed that GEG had a strong start to the fourth quarter, though he cautioned that momentum could stabilize in November and December, according to Macau Business.
Umansky emphasized that GEG's "competitive advantage lies in its entertainment and event offerings, scale, service, and product range." He noted that major music events significantly boost business, with the fourth-quarter lineup favoring Galaxy Macau's market share gains. The Galaxy Arena at the Cotai resort, Macau’s largest indoor venue, boasts a capacity of 16,000 seats.
“With a re-focused marketing effort and smart digital tables up and running before Chinese New Year,” Umansky added, “we expect share gains to continue at Galaxy Macau over the next few quarters and into 2025.”
