Galaxy Entertainment Shows Macau Is Back To Normal Once More

Dr Lui Che-woo Chairman of Galaxy at the IGA in London

Galaxy Entertainment Group (GEG) in Macau, has reported an impressive recovery in its third-quarter performance for 2023. The company’s net revenue skyrocketed to HK$9.7 billion ($1.24 billion), marking a remarkable 374 percent year-on-year increase. This surge in revenue is a positive sign of the ongoing recovery in both visitor arrivals and gaming revenue in Macau.

GEG’s adjusted EBITDA also experienced a significant boost, reaching HK$2.8 billion ($359 million), reflecting a staggering 576 percent year-on-year increase. This outstanding financial performance can be attributed to the recovery in visitor arrivals and the associated gaming revenue. The company’s mass gaming revenue performed exceptionally well, surpassing 2019 levels by 102 percent. Galaxy Macau, one of GEG’s flagship properties, outperformed even further, achieving 121 percent of its 2019 revenue. Additionally, StarWorld Macau continued to grow steadily, reaching approximately 71 percent of its 2019 revenue.

Chairman of GEG, Lui Che Woo, highlighted the exceptional performance during the October Golden Week. Macau recorded a total of 932,365 visitor arrivals during this eight-day period, which is nearly 84 percent of the corresponding period in pre-pandemic 2019. The average guest room occupancy rate in Macau hotels stood at an impressive 88 percent throughout the Golden Week. These figures signify a strong rebound in tourism and a positive outlook for the industry.

GEG is actively working on the construction of Phase 4, a significant expansion project that aims to further enhance its integrated resort offerings. This phase will include multiple high-end hotel brands, a 4,000-seat theatre, extensive F&B options, retail outlets, non-gaming amenities, landscaping, and a water resort deck. With a development area spanning 600,000 square meters, Phase 4 is scheduled to be completed by 2027.

Lui Che Woo emphasized that GEG remains flexible in adjusting the development timeline of Phase 4 to align with market demand. This strategic approach ensures that the company can adapt to changing trends and cater to the evolving preferences of visitors.

Since reopening the border in January 2023, GEG has accelerated its development plans. The integrated resort, Galaxy Macau, introduced a new addition to its portfolio in July 2023 – Raffles Hotel. This exclusive all-suites hotel offers 450 luxurious accommodations, further enhancing the resort’s appeal to high-end clientele.

Additionally, GEG opened Andaz Macau on September 15, 2023. This new property is specifically designed to support the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry and the Arena facilities within the Galaxy International Convention Centre (GICC). The introduction of Andaz Macau strengthens GEG’s position as a premier destination for corporate events and exhibitions.

International Market Expansion

GEG expressed its satisfaction with the collaborative efforts between the Macau and Hong Kong Governments to improve accessibility between Hong Kong International Airport and Macau. Starting from August 30, 2023, the Hong Kong-Zhuhai-Macau Bridge introduced a through-bus service to and from the Hong Kong International Airport restricted area. This initiative is expected to contribute to the Macau Government’s goal of increasing the number of foreign visitors.

Galaxy Entertainment Group’s exceptional third-quarter performance in 2023 reflects the remarkable recovery of Macau’s gaming industry. The significant increase in net revenue and adjusted EBITDA demonstrates the resurgence of visitor arrivals and gaming revenue.