Galaxy Entertainment See Major Rise In Revenues For 2023

Galaxy Entertainment Group (GEG) experienced a surge in revenue, with an impressive increase of 211.0% in 2023. This surge was primarily driven by the full reopening of the Macau gaming market, as the region withdrew all remaining pandemic travel and quarantine restrictions in January 2023.

The lifting of travel and quarantine restrictions in Macau had a significant impact on Galaxy’s revenue, as it allowed people to freely travel to the region, including Galaxy Macau. As a result, revenue at the Galaxy Macau alone skyrocketed by an astounding 274.3% year-on-year in 2023, with gaming revenue experiencing a remarkable increase of 312.1%.

The relaxation of restrictions also had a positive effect on other operations in Macau, despite increased competition in the region. Chairman Lui Che Woo commended the 2023 performance, highlighting the company’s efforts to drive every segment of the business, particularly focusing on the mass business. Despite the challenges posed by continuing competition and various geo-political and economic issues, Galaxy’s revenue growth reflected its commitment to efficient resource allocation and customer satisfaction.

In addition to the revenue surge, Galaxy made significant progress in multiple development projects during the past year. The company opened the 450 all-suite Raffles at Galaxy Macau and the premium mass Horizon Club. The Galaxy International Convention Centre (“GICC”) and Galaxy Arena also welcomed visitors, and the Andaz Macau fully opened prior to Chinese New Year 2024.

Galaxy’s ongoing work includes the fourth phase of development for a new integrated resort in Macau, which is projected to be completed by 2027. This development encompasses various exciting additions, such as a new casino, multiple hotel brands, a theatre, retail facilities, non-gaming amenities, landscaping, and a water resort deck. The company aims to attract a broader range of customers to its resorts, leveraging existing facilities and growing the overall market.

Breaking down the 2023 figures, Galaxy experienced a substantial increase in group net gaming revenue, which rose by 315.6% to $23.29 billion. Non-gaming revenue also witnessed a significant hike of 167.0% to $5.40 billion, while construction material revenue edged up by 3.8% to $3.00 billion.

The revenue from Galaxy Macau alone amounted to a staggering $27.72 billion, surpassing the $7.42 billion recorded in 2022 when pandemic restrictions impacted the region. Gaming revenue at Galaxy Macau accounted for $22.91 billion, with non-gaming revenue reaching $3.25 billion and construction materials contributing $1.56 billion.

StarWorld Macau, another key component of Galaxy’s operations, also experienced a substantial increase in revenue. The revenue climbed by 56.9% to $4.64 billion, further fuelled by the removal of Covid-19 measures. Of this total, $4.15 billion was attributed to gaming activity, reflecting a remarkable increase of 339.6%.

Moreover, revenue from the Broadway Macau entertainment and street resort witnessed a significant jump of 72.0% to $103 million, while City Clubs revenue increased by an impressive 264.0% to $222 million. Although a full breakdown of costs, tax, and net profit for the year was not provided, revenue growth played a crucial role in driving adjusted EBITDA from a loss of $0.60 billion in 2022 to a positive of $10.00 billion for 2023.

Galaxy’s success extended into the final quarter of 2023 as well, with group revenue reaching $10.30 billion, representing a remarkable increase of 253.9% year-on-year. During this period, Galaxy Macau revenue surged by 346.6% to $8.19 billion, while StarWorld Macau experienced a significant increase of 410.2% to $1.26 billion. Broadway Macau revenue for the fourth quarter jumped by 100.0% to $38 million, and City Clubs revenue increased by 185.0% to $57 million.

Adjusted EBITDA for the fourth quarter amounted to $2.81 billion, a significant improvement compared to the loss of $163 million in 2022. These impressive results reflect the dedication and hard work of Galaxy’s team members, who consistently deliver “World Class, Asian Heart” service and contribute to the group’s success.