Galaxy Entertainment Group (GEG) has posted its strongest quarterly performance since the COVID-19 pandemic, with exceptional growth across key financial metrics for the three months ending June 30, 2024.
Strong Financial Performance
In Q2 2024, GEG achieved a remarkable gross gaming revenue (GGR) of HK$10.3 billion (US$1.32 billion), reflecting a 35.0% increase year-on-year and a 7.4% rise sequentially. This growth underscores a robust recovery and increasing demand across its gaming operations. The company’s Adjusted EBITDA for the quarter also saw substantial growth, climbing 28.4% from the previous year and 12.0% from the previous quarter to reach HK$3.18 billion (US$408 million).
Key Drivers Behind the Growth
The impressive performance of Galaxy Macau was a major driver of GEG’s success. The flagship property reported a GGR of HK$8.86 billion (US$1.14 billion), marking a 39.5% year-on-year increase. Its Adjusted EBITDA totaled HK$2.78 billion (US$358 million), with an EBITDA margin of 32%. This highlights Galaxy Macau’s continued strength and appeal in the competitive Macau market.
On the Macau peninsula, StarWorld contributed significantly to the overall results, with GGR rising by 13.6% to HK$1.42 billion (US$182 million). StarWorld’s Adjusted EBITDA reached HK$390 million (US$50.0 million), demonstrating a solid EBITDA margin of 29%. Although Broadway Macau and City Clubs did not provide detailed financials, both showed noteworthy improvements. Broadway Macau’s Adjusted EBITDA doubled from Q1 to HK$8 million (US$1.0 million), while City Clubs saw a 25% sequential increase in EBITDA to HK$5 million (US$642,000).
Operational Excellence and High Occupancy Rates
GEG’s resorts reported near-full occupancy rates for both Q2 and the first half of 2024, reflecting a successful recovery in the hospitality sector. This high occupancy rate underscores the effective management and attractiveness of GEG’s resort properties, which continue to draw significant visitor numbers.
Technological Advancements: Smart Tables
The company has made significant progress in integrating smart table technology. Following successful backend systems integration and customer database transfers, GEG initiated the rollout of smart tables at Galaxy Macau’s main gaming floor in early July. This rollout is expected to be completed by the end of the year, marking a significant technological advancement in their gaming operations.
Future Developments and Projects
Looking ahead, GEG is actively advancing its development projects. The Capella at Galaxy Macau is on track to open in mid-2025, adding a new luxury dimension to the resort. Additionally, the development of Galaxy Macau Phase 4 is progressing, with a strong emphasis on expanding non-gaming facilities, including entertainment and family-oriented amenities, alongside additional gaming options.
Galaxy Entertainment Group’s Q2 2024 results highlight a period of significant growth and operational success. The impressive increases in gross gaming revenues and Adjusted EBITDA reflect the company’s effective strategies and resilience in the post-pandemic environment. With ongoing technological advancements and ambitious development projects, GEG is well-positioned to sustain its momentum and achieve further successes in the future.