Galaxy Entertainment Sees Profits Rise By 52% In H1 Results

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

Galaxy Entertainment Group reported a 52% increase in net profit for the first half of 2024, totalling over HK$4.4 billion ($564.7 million). This was driven by a 37% surge in revenue, which reached HK$21.5 billion ($2.76 billion) during the period.

Galaxy’s Chairman, Lui Che Woo, attributed the group’s success to its ability to “drive every segment of our business and further improve our resorts.” This multi-pronged approach paid dividends, as the company witnessed strong growth across its key business lines.

The total gross gaming revenue (GGR) during the first half of 2024 rose by 45% year-on-year, reaching HK$20 billion ($2.57 billion). Mass gaming GGR led the charge, climbing 43% to HK$16 billion ($2.05 billion), while the rolling chip segment saw a 56% surge to HK$2.7 billion ($346.5 million). The electronic gaming segment also experienced a robust 61% yearly increase, reaching HK$1.3 billion ($166.85 million).

Galaxy’s flagship property, Galaxy Macau, was a standout performer, contributing HK$6.95 billion ($892 million) in net revenue during the first half of 2024 – a 43% year-on-year increase. The second quarter was particularly strong, with the property generating HK$8.6 billion ($1.1 billion) in revenue, up 32% annually and 4% sequentially.

Gaming revenues at Galaxy Macau also experienced a 44.2% yearly surge, reaching HK$14.23 billion ($1.83 billion) during the six-month period. The second quarter saw a 6.67% sequential increase and a 35.3% yearly rise in gaming revenues.

The group’s StarWorld property on the Macau peninsula also delivered a solid performance, with gaming revenues increasing by 25.6% year-on-year to HK$2.42 billion ($310.6 million) in the first half of 2024. While gaming revenue dipped slightly by 3.6% sequentially in the second quarter, it still managed to grow by 7.9% annually.

Interestingly, the group noted that StarWorld Macau “experienced good luck in its operations,” which contributed an additional HK$48 million ($6.16 million) to the property’s adjusted EBITDA, which reached HK$777 million ($99.73 million) for the period.

Galaxy’s commitment to innovation and growth is evident in its plans for the future. The group is preparing to open its highly anticipated 17-story ultra-luxury hotel, Capella, in mid-2025, further diversifying its portfolio and catering to the high-end market.

Additionally, the group is ramping up the development of the Galaxy International Convention Center (GICC), Galaxy Arena, Raffles, and Andaz hotels, all of which are expected to contribute to the group’s long-term success.

Looking ahead, Galaxy’s Phase 4 development, scheduled for completion in 2027, promises to be a game-changer. This expansion will introduce “multiple high-end hotel brands new to Macau,” along with a 5,000-seat theatre, a wide array of F&B and retail options, non-gaming attractions, a water resort deck, and a casino.

Notably, the group’s Chairman emphasized that Phase 4 will have a “strong focus on non-gaming, primarily targeting entertainment and family facilities,” underscoring the company’s strategic shift towards diversifying its offerings beyond just gaming.