Galaxy Entertainment Q3 Revenue Rises Year-on-Year but Drops Quarter-on-Quarter

Galaxy Entertainment Group Ltd. (GEG), a household name in Macau’s gaming and hospitality industry, recently released its financial reports for Q3 2024. The reports showcased a strong performance in the Group’s net revenue, coming to HK$10.7 billion (US$1.36 billion), an 11% rise from the previous year.

Like other renowned groups in the region, such as Wynn Resorts, Galaxy Entertainment’s financial results indicate a robust recovery trajectory post-pandemic. However, revenue dips across the board have occurred compared to Q2.

A Closer Look at Earnings

According to the financial reports unveiled Thursday morning, GEG’s gross gaming revenue (GGR) was HK$10.2 billion (US$1.31 billion), a 16% rise year-on-year but a 2% decline quarter-on-quarter. Mass table win volume totaled HK$8.39 billion (US$1.08 billion), rolling chip wins came in at HK$1.10 billion (US$141 million), and electronic games at HK$666 million (US$86 million). The GGR accounted for 76.8% of the operator’s net revenue.

Non-gaming and construction material revenue also went up compared to last year. Non-gaming revenue totaled HK$1.67 billion, a 9.6% rise year-on-year. Unlike other sectors, it also went up quarter-on-quarter by 12.3%. Construction material revenue totaled HK$805 million, a rise from last year’s HK$713 million.

GEG’s adjusted EBITDA (Earnings Before Income, Taxes, Depreciation, and Amortization) was HK$2.94 billion (US$378 million), representing a 6% increase year-on-year but a 7% decline quarter-on-quarter. The Group’s gaming operations experienced some challenges, leading to a HK$165 million (US$21 million) deduction from EBITDA. However, once normalized, the adjusted EBITDA displayed a remarkable 68% growth of HK$11.8 billion (US$1.52 billion).

Galaxy Macau in the Lead

GEG’s flagship property, Galaxy Macau, raked in the most GGR of HK$8.64 billion (US$1.11 billion), up 10% from the previous year but down 3% quarter-on-quarter. Non-gaming revenue came in at HK$1.47 billion (US$189 million). The casino resort’s adjusted EBITDA was stable compared to last year, dropping only 4% compared to the same quarter in 2023.

Galaxy Macau’s mall revenue contrasted with other trends, rising to HK$347 million, up from Q2’s HK$326 million. However, it declined from last year’s HK$ 366 million. Hotel, food, and beverage showed positive year-on-year and quarter-on-quarter trends, rising 12.1% and 15.9%, respectively.

Ongoing Developments

Galaxy Entertainment is currently advancing Galaxy Macau Phase 4 to feature the new Capella hotel. The development is expected to be completed by mid-2025, and it will include approximately 100 ultra-luxury sky villas and suites. GEG seeks to focus on adding entertainment facilities to complement its gaming attractions and have diverse offerings for guests.