Galaxy Entertainment Group (GEG) recently released its quarterly financial report for the first quarter of 2024, showcasing impressive growth in group-wide gross gaming revenue (GGR) and adjusted EBITDA. The standout performer was Galaxy Macau, GEG’s flagship resort, which experienced a substantial uplift in performance attributed to the reconfiguration of its gaming floor.
Key Performance Metrics:
In the first quarter of 2024, GEG reported a remarkable 59% year-on-year increase in group-wide GGR, amounting to HK$9.63 billion (US$1.23 billion). This growth was accompanied by a 4% sequential increase. The improved performance was primarily driven by Galaxy Macau’s reconfigured gaming floor, which witnessed a significant enhancement in customer traffic flow.
Impact of Gaming Floor Restructuring:
Dr. Lui Che Woo, the chairman of GEG, emphasized the positive outcomes of the reconfigured gaming floor at Galaxy Macau. He noted that despite the disruptive nature of the adjustments in January and early February, the subsequent improvements resulted in a notable increase in customer traffic across the entire floor. This led to a substantial boost in the resort’s mass GGR, which surged by 57% year-on-year and remained steady quarter-on-quarter at HK$7.73 billion (US$990 million).
Rolling chip GGR also experienced significant growth, increasing by 64% year-on-year and 43% quarter-on-quarter to HK$1.30 billion (US$166 million). Furthermore, electronic GGR saw a substantial uptick, rising by 78% year-on-year and 18% quarter-on-quarter to HK$600 million (US$77 million). These impressive figures underscore the effectiveness of the gaming floor reconfiguration in driving revenue growth across various segments.
Financial Performance by Property:
Breaking down the performance by property, Galaxy Macau emerged as the standout contributor to GEG’s revenue stream. The resort recorded a 3% sequential increase in GGR, reaching HK$8.14 billion (US$1.04 billion). Adjusted EBITDA for Galaxy Macau stood at HK$2.61 billion (US$334 million), reflecting the resort’s robust financial performance.
Meanwhile, StarWorld, GEG’s property on the peninsula, witnessed a notable 9% increase in GGR, amounting to HK$1.43 billion (US$183 million). The property’s Adjusted EBITDA reached HK$435 million (US$56 million), indicating a healthy growth trajectory.
Broadway Macau and City Clubs also contributed to GEG’s revenue stream, with Broadway Macau recording net revenue of HK$46 million (US$5.9 million) and returning to Adjusted EBITDA profit at HK$4 million (US$512,000). City Clubs reported net revenue of HK$58 million (US$7.4 million) with Adjusted EBITDA also at HK$4 million.
Future Enhancements and Expansion Plans:
Looking ahead, Dr. Lui expressed optimism about the company’s future prospects, particularly highlighting the successful performance during the May Golden Week and post-reconfiguration of Galaxy Macau’s gaming floor. He indicated that further refinement initiatives were underway, including the implementation of smart tables across the portfolio to enhance efficiency on the gaming floor.
Additionally, GEG is focused on updating its slot machine products and planning a range of upgrades for StarWorld Macau. These strategic initiatives reflect the company’s commitment to continuous improvement and innovation in its gaming offerings to meet evolving customer preferences and enhance overall operational efficiency.
Galaxy Entertainment Group’s impressive financial performance in the first quarter of 2024 underscores the positive impact of the reconfigured gaming floor at Galaxy Macau. The substantial growth in GGR and adjusted EBITDA, coupled with successful performance across various revenue segments, reflects the effectiveness of GEG’s strategic initiatives and operational enhancements. As the company continues to invest in innovative gaming technologies and expand its portfolio, it is poised for sustained growth and success in the dynamic casino market landscape.