Galaxy Entertainment Reports Strong Q3 Revenue Growth

Galaxy Entertainment Group (GEG) has announced its financial results for the third quarter of 2024, with the company reporting a year-on-year revenue increase of 11%, reaching HK$10.7 billion (approximately $1.38 billion).

The financial results, released on Thursday morning, show adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at HK$2.9 billion ($373 million), reflecting a 6% increase compared to the same period last year, although it marked a 7% decrease from the previous quarter.

In the realm of gaming, GEG faced some challenges during the third quarter. The company experienced an approximate HK$165 million reduction in adjusted EBITDA due to unfavorable gaming results. However, when accounting for these fluctuations, the normalized adjusted EBITDA was reported at HK$3.1 billion ($399 million), which is a commendable 7% increase year-on-year. This adjusted figure was slightly lower by 3% compared to the previous quarter.

Despite the hurdles faced, GEG’s financial health remains strong. As of September 30, 2024, the company reported cash and liquid investments totaling HK$28.6 billion ($3.68 billion). After factoring in HK$1.2 billion ($154 million) in debt, GEG’s net position stands at HK$27.4 billion ($3.53 billion).

Galaxy Macau, one of GEG’s flagship integrated resorts located in the Cotai area, continues to be a significant contributor to the company’s revenue stream. In the third quarter of 2024, Galaxy Macau reported net revenue of HK$8.4 billion ($1.08 billion), reflecting a 10% increase year-on-year, although it experienced a 3% decline compared to the previous quarter.

The adjusted EBITDA for Galaxy Macau remained flat year-on-year at HK$2.6 billion ($335 million), which is an 8% decrease from the previous quarter. The unfavorable gaming results during this period contributed to a decrease in adjusted EBITDA by approximately HK$180 million ($23.2 million).

In addition to Galaxy Macau, GEG’s other properties also demonstrated positive performance in Q3 2024. StarWorld Macau, for instance, reported net revenue of HK$1.3 billion ($167 million), marking a 9% increase year-on-year and a 1% increase quarter-on-quarter. The adjusted EBITDA for StarWorld Macau reached HK$396 million, which is a 14% improvement compared to the previous year and a 2% increase from the last quarter.

The favourable gaming results at StarWorld Macau contributed an additional HK$15 million ($1.9 million) to its adjusted EBITDA, resulting in a normalized figure of HK$381 million ($49 million). This reflects a 9% year-on-year increase and a 7% improvement quarter-on-quarter.

Broadway Macau and the City Clubs also played crucial roles in GEG’s overall performance during the third quarter. Broadway Macau’s adjusted EBITDA improved to HK$11 million ($1.4 million), a significant turnaround from a loss of HK$14 million ($1.8 million) in the same quarter of the previous year.

Meanwhile, the City Clubs division, which operates GEG’s satellite casinos and hotels, reported a notable 20% increase in adjusted EBITDA both year-on-year and quarter-on-quarter.