Macau’s Galaxy Entertainment Group (GEG) recently addressed some confusion stemming from Hong Kong media reports about its dividend history. The reports suggested that GEG had not declared a Special Dividend since 2004, which led to some misunderstanding among investors. To set the record straight, GEG issued a detailed clarification regarding its consistent dividend payments over the years.
Dividend Policy Clarification
Following the release of its Q2 2024 financial results, GEG declared an Interim Dividend of HK$0.50 per share. However, subsequent media reports appeared to create some ambiguity about the company’s historical dividend payments. In response, GEG emphasized that it has consistently paid dividends twice a year since July 2014. The company explained that it typically distributes one dividend following the half-year close and another after the year-end close.
The only exception to this practice occurred during the COVID-19 pandemic when dividend payments were temporarily suspended due to the uncertainty surrounding reopening dates. Once the situation stabilized, GEG was notably the first Macau Concessionaire to resume dividend payments, demonstrating its commitment to returning capital to shareholders.
A Track Record of Increasing Dividends
In its statement, GEG also highlighted the increase in its recent dividend payments. The latest dividend of HK$0.50 per share represents a 66% increase from the previous dividend of HK$0.30 per share. This increase is significant, reflecting the company’s strong financial performance and confidence in its future prospects.
To provide further transparency, GEG published a list of all dividends paid over the past 10 years. The data shows that last week’s HK$0.50 Interim Dividend is the highest per-share dividend paid since the HK$0.70 dividend declared in July 2014.
“We wish to confirm that we are committed to returning capital to shareholders through our consistent dividend track record,” stated Francis Lui, Vice Chairman of GEG.
Financial Performance and Market Position
In addition to clarifying its dividend policy, GEG’s recent financial results have shown a strong rebound. The company’s Q2 2024 results revealed that it had regained significant market share, with analysts estimating that GEG held almost 20% of the market in July. This recovery indicates robust operational performance and suggests that GEG is well-positioned for continued growth.
Galaxy Entertainment Group’s recent clarification on its dividend policy underscores its commitment to transparency and shareholder value. The company’s consistent dividend payments and recent financial performance highlight its resilience and growth potential in a competitive market. As GEG continues to regain market share and increase dividend payouts, it remains a strong player in the Macau gaming industry.
By addressing the ambiguity in media reports and providing a clear outline of its dividend history, GEG has reassured investors of its financial health and long-term strategic focus. The company’s proactive communication and robust financial results are likely to bolster investor confidence and support its continued success in the market.