Q4 2023 Group Adjusted EBITDA of $2.8 Billion,
Versus $(163) Million in Q4 2022
2023 Full Year Group Adjusted EBITDA of $10.0 Billion
Versus $(0.6) Billion in 2022
2023 Full Year Group NPAS of $6.8 Billion
Versus $(3.4) Billion in 2022
Announced Another Special Dividend of $0.30 Per Share
HONG KONG, Feb. 28, 2024 (GLOBE NEWSWIRE) — Galaxy Entertainment Group (“GEG”, “Company” or the “Group”) (HKEx stock code: 27) today reported results for the three-month and twelve-month periods ended 31 December 2023. (All amounts are expressed in HKD unless otherwise stated).
Dr. Lui Che Woo, Chairman of GEG said:
“Today I am pleased to provide an update on our financial results for Q4 and full year 2023. At GEG, we continue to drive every segment of the business with a particular focus on the mass business and continue to allocate resources to their most efficient use. Our efforts are reflected in full year Adjusted EBITDA of $10.0 billion, versus $(0.6) billion in 2022. This was despite continuing competition in both Macau and regionally and a number of geo-political and economic issues that impacted consumer sentiment.
Our balance sheet continued to be solid with total cash and liquid investments of $25.0 billion and net cash of $23.5 billion as of 31 December 2023. We paid a special dividend of $0.20 per share on 27 October 2023 and we are pleased to announce another special dividend of $0.30 per share to be paid on or about 26 April 2024. We are the first Macau concessionaire to resume dividends and return capital to shareholders after the border reopened. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the Company. Our solid balance sheet and cash flow from operations allows us to fund our development pipeline and pursue our international expansion ambitions.
In 2023 GEG had a busy year with the completion of multiple development projects. These included the opening of the 450 all-suite Raffles at Galaxy Macau and the new premium mass Horizon Club, the opening of both the Galaxy International Convention Centre (“GICC”) and Galaxy Arena. The progressive opening of Andaz Macau was fully opened prior to Chinese New Year 2024. In 2023, GEG held approximately 200 MICE events and 85 concerts and performances across GICC, Galaxy Arena and Broadway Theatre.
Moving to Phase 4, we continue to progress with its construction. Phase 4 is approximately 600,000 square meters of development and is scheduled to complete in 2027. Phase 4 will include multiple high-end hotel brands new to Macau, together with a 4000-seat theater, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino, which is targeted to capture the ongoing expanding market that seeks a more encompassing lifestyle experience.
Furthermore, we are actively working with the MGTO to develop international markets. We are aligning our business accordingly and supporting the Government’s vision. Non-gaming is focused on attracting a broader range of customers to our resorts, leveraging our existing facilities and growing the overall market. These efforts will take time and we are doing our best. GEG has opened overseas offices in Tokyo and Seoul in 2023, and will soon be opening another office in Bangkok. The competition for high-value international tourists is significant and we will strive to support this Government initiative.
Macau’s Gross Gaming Revenue (“GGR”) for 2023 exceeded MOP1801 billion. In accordance with the gaming concession agreement, the six concessionaires will increase their investment commitments by 20% over the term of the concession. This demonstrates our support to the Government in developing Macau into the World Centre of Tourism and Leisure.
Finally, I would like to thank all our team members who deliver ‘World Class, Asian Heart’ service each and every day and contribute to the success of the Group.”
Q4 & FULL YEAR 2023 RESULTS HIGHLIGHTS
GEG: Well Positioned for Future Growth
Full Year Group Net Revenue of $35.7 billion, up 211% year-on-year
Full Year Group Adjusted EBITDA of $10.0 billion versus $(0.6) billion in 2022
Full Year Group NPAS of $6.8 billion versus $(3.4) billion in 2022
Full year Adjusted NPAS of $7.5 billion after adjusting for non-recurring and other charges
Q4 Group Net Revenue of $10.3 billion, up 254% year-on-year and up 7% quarter-on-quarter
Q4 Group Adjusted EBITDA of $2.8 billion, versus $(0.2) billion in Q4 2022 and $2.8 billion in Q3 2023
Played unlucky which decreased Adjusted EBITDA by approximately $103 million, normalized Q4 Adjusted EBITDA of $2.9 billion, versus $(0.1) billion in Q4 2022 and $2.9 billion in Q3 2023
Galaxy MacauTM: Well Positioned for Future Growth
Full Year Net Revenue of $27.7 billion, up 274% year-on-year
Full Year Adjusted EBITDA of $9.1 billion, versus $295 million in 2022
Q4 Net Revenue of $8.2 billion, up 347% year-on-year and up 7% quarter-on-quarter
Q4 Adjusted EBITDA of $2.6 billion, versus $58 million in Q4 2022 and $2.6 billion in Q3 2023
Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $107 million, normalized Q4 Adjusted EBITDA of $2.7 billion, versus $98 million in Q4 2022 and $2.7 billion in Q3 2023
Hotel occupancy for Q4 across the seven hotels was 95%
StarWorld Macau: Well Positioned for Future Growth
Full Year Net Revenue of $4.6 billion, up 343% year-on-year
Full Year Adjusted EBITDA of $1.3 billion versus $(0.5) billion in 2022
Q4 Net Revenue of $1.3 billion, up 410% year-on-year and up 2% quarter-on-quarter
Q4 Adjusted EBITDA of $353 million, versus $(142) million in Q4 2022 and $347 million in Q3 2023
Played lucky in Q4 which increased Adjusted EBITDA by approximately $4 million, normalized Q4 Adjusted EBITDA of $349 million, up 346% year-on-year and down 1% quarter-on-quarter
Hotel occupancy for Q4 was 100%
Broadway Macau™, City Clubs and Construction Materials Division
Broadway Macau™: Full Year Adjusted EBITDA of $(36) million, versus $(62) million in 2022. In Q4 2023 Adjusted EBITDA was $(2) million, versus $(10) million in Q4 2022 and $(14) million in Q3 2023
City Clubs: Full Year Adjusted EBITDA of $15 million, versus $(21) million in 2022. In Q4 2023 Adjusted EBITDA was $3 million, up 121% year-on-year and down 40% quarter-on-quarter
Construction Materials Division: Full Year Adjusted EBITDA of $698 million, up 23% year-on-year. In Q4 2023, Adjusted EBITDA was $205 million, up 28% year-on-year and up 25% quarter-on-quarter
Balance Sheet: Maintain a Healthy and Liquid Balance Sheet
As at 31 December 2023, cash and liquid investments were $25.0 billion and net cash was $23.5 billion
As at 31 December 2023, debt was $1.5 billion
Paid a special dividend of $0.20 per share on 27 October 2023
Announced another special dividend of $0.30 per share payable on or about 26 April 2024
Development Update: Opened Phase 3 including GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau; Progressing with Phase 4
Cotai Phase 3 – Opened GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau
Cotai Phase 4 – Our efforts are firmly focused on the development of Phase 4. Phase 4 has a strong focus on non-gaming, primarily targeting MICE, entertainment, family facilities and also includes gaming
Macau Market Overview
Based on DICJ reporting, Macau’s GGR for 2023 was $177.7 billion, up 334% year-on-year. GGR in Q4 2023 was $52.5 billion, up 421% year-on-year and up 11% quarter-on-quarter.
In 2023, visitor arrivals to Macau were 28.2 million, up 395% year-on-year, which has recovered to 72% of 2019. Overnight visitors were 14.2 million, increased 472% year-on-year. Mainland visitor arrivals to Macau were 19 million, up 273% year-on-year, with Individual Visit Scheme visitors were 10.6 million, up 532% year-on-year. The numbers of Mainland, Hong Kong and international visitors in 2023 returned to 68%, 98% and 48% of the corresponding levels of pre-COVID.
Group Financial Results
Full Year 2023
The Group posted Net Revenue of $35.7 billion, up 211% year-on-year. Adjusted EBITDA was $10.0 billion versus $(0.6) billion in 2022. NPAS was $6.8 billion versus $(3.4) billion in 2022. Galaxy Macau™’s Adjusted EBITDA was $9.1 billion, versus $295 million in 2022. StarWorld Macau’s Adjusted EBITDA was $1.3 billion versus $(527) million in 2022. Broadway Macau™’s Adjusted EBITDA was $(36) million versus $(62) million in 2022.
In 2023, GEG played unlucky in its gaming operation which decreased its Adjusted EBITDA by approximately $162 million. Normalized Adjusted EBITDA was $10.1 billion versus $(520) million in 2022.
Summary table of GEG Q4 and full year 2023 Adjusted EBITDA and adjustments:
in HK$’m
Q4 2022
Q3 2023
Q4 2023
QoQ
FY 2022
FY 2023
Adjusted EBITDA
(163)
2,768
2,807
1%
(553)
9,955
Luck2
(40)
(122)
(103)
–
(33)
(162)
Normalized Adjusted EBITDA
(123)
2,890
2,910
1%
(520)
10,117
The Group’s total GGR on a management basis3 in 2023 was $31.7 billion, up 322% year-on-year. Mass GGR was $26.5 billion, up 328% year-on-year. VIP GGR was $3.4 billion, up 273% year-on-year. Electronic GGR was $1.8 billion, up 340% year-on-year.
Group Key Financial Data
(HK$’m)
2022
2023
Revenues:
Net Gaming
6,566
27,290
Non-gaming
2,021
5,396
Construction Materials
2,887
2,998
Total Net Revenue
11,474
35,684
Adjusted EBITDA
(553)
9,955
Gaming Statistics4
(HK$’m)
2022
2023
Rolling Chip Volume5
31,157
117,660
Win Rate %
3.0%
2.9%
Win
923
3,447
Mass Table Drop6
23,685
107,531
Win Rate %
26.1%
24.6%
Win
6,188
26,486
Electronic Gaming Volume
11,679
50,884
Win Rate %
3.5%
3.5%
Win
405
1,780
Total GGR Win7
7,516
31,713
Balance Sheet and Dividend
The Group’s balance sheet remains healthy and liquid. As of 31 December 2023, cash and liquid investments were $25.0 billion and net cash was $23.5 billion. Debt was $1.5 billion which primarily reflects our ongoing treasury yield management initiatives. Our strong balance sheet combined with substantial cash flow from operations allows us to return capital to shareholders via dividends and to fund our development pipeline. The Group paid a special dividend of $0.20 per share on 27 October 2023. Subsequently we announced a special dividend of $0.30 per share to be paid on or about 26 April 2024. This attests to our confidence in Macau, our financial strength and our future earnings potential.
Q4 2023
The Group’s Net Revenue was $10.3 billion, up 254% year-on-year and up 7% quarter-on-quarter. Adjusted EBITDA was $2.8 billion, versus $(163) million in Q4 2022 and $2.8 billion in Q3 2023. Galaxy Macau™’s Adjusted EBITDA was $2.6 billion, versus $58 million in Q4 2022 and $2.6 billion in Q3 2023. StarWorld Macau’s Adjusted EBITDA was $353 million, versus $(142) million in Q4 2022 and $347 million in Q3 2023. Broadway Macau™’s Adjusted EBITDA was $(2) million, versus $(10) million in Q4 2022 and $(14) million in Q3 2023.
During Q4 2023, GEG played unlucky in its gaming operations which decreased its Adjusted EBITDA by approximately $103 million. Normalized Adjusted EBITDA was $2.9 billion, versus $(123) million in Q4 2022 and $2.9 billion in Q3 2023.
The Group’s total GGR on a management basis in Q4 2023 was $9.2 billion, up 407% year-on-year and up 6% quarter-on-quarter. Mass GGR was $7.8 billion, up 398% year-on-year, up 5% quarter-on-quarter. VIP GGR was $909 million, up 514% year-on-year and up 12% quarter-on-quarter. Electronic GGR was $508 million, up 393% year-on-year and up 3% quarter-on-quarter.
Group Key Financial Data
(HK$’m)
Q4 2022
Q3 2023
Q4 2023
FY2022
FY2023
Revenues:
Net Gaming
1,615
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