Galaxy Entertainment Group Selected Unaudited Q3 2024 Financial Data

Q3 2024 Group Adjusted EBITDA of $2.9 Billionup 6% Year-on-Year and Down 7% Quarter-on-Quarter

Paid an Interim Dividend of $0.50 Per Share on 25 October 2024

Continues fit out Capella at Galaxy Macau & Construction of Phase 4

Ramping up Galaxy International Convention Center and Galaxy Arena

Well Advanced Deploying Smart Tables Across our Resorts

HONG KONG, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Galaxy Entertainment Group ("GEG", "Company" or the "Group") (HKEx stock code: 27) today reported results for the three-month period ended 30 September 2024. (All amounts are expressed in Hong Kong dollars unless otherwise stated)

Dr. Lui Che Woo, Chairman of GEG said:

"Today I am pleased to report the third quarter results for the Group in 2024. In Q3 2024 Group Net Revenue increased 11% year-on-year to $10.7 billion and Adjusted EBITDA increased 6% year-on-year to $2.9 billion, played unlucky in Q3 which decreased Adjusted EBITDA by approximately $165 million.

For the recent National Day Golden Week holiday, we were pleased that Macau recorded a total of 993,117 visitor arrivals. The daily average number of visitor arrivals during the seven-day period reached nearly 102% of the corresponding period in pre-pandemic 2019. Macau hotels' average guestroom occupancy stood at 95% during the period.

Our balance sheet continued to be healthy and liquid with total cash and liquid investments of $28.6 billion and the net position was $27.4 billion after debt of $1.2 billion. Our solid balance sheet and cash flow from operations allows us to return capital to shareholders through dividends, fund our development pipeline and pursue our international expansion ambitions. On 25 October 2024, we paid the previously announced interim dividend of $0.50 per share. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the Company.

On the development front, we continue to move forward with the fitting out of the Capella at Galaxy Macau and Phase 4, which has a strong focus on non-gaming, primarily targeting entertainment, family facilities and includes gaming.

We were very pleased to celebrate the 75th anniversary of the founding of the People's Republic of China and are pleased to welcome the 25th anniversary of Macau's return to the Motherland this December. Furthermore, we congratulate Mr. Sam Hou Fai who was elected as the new Chief Executive of Macau SAR.

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."

Q3 2024 RESULTS HIGHLIGHTS GEG: Well Positioned for Future Growth

Q3 Group Net Revenue of $10.7 billion, up 11% year-on-year and down 2% quarter-on-quarter

Q3 Group Adjusted EBITDA of $2.9 billion, up 6% year-on-year and down 7% quarter-on-quarter

Played unlucky in Q3 which decreased Adjusted EBITDA by approximately $165 million, normalized Q3 Adjusted EBITDA of $3.1 billion, up 7% year-on-year and down 3% quarter-on-quarter

Latest twelve months Adjusted EBITDA of $11.8 billion, up 68% year-on-year and up 1% quarter-on-quarter

Galaxy Macau™: Well Positioned for Future Growth

Q3 Net Revenue of $8.4 billion, up 10% year-on-year and down 3% quarter-on-quarter

Q3 Adjusted EBITDA of $2.6 billion, flat year-on-year and down 8% quarter-on-quarter

Played unlucky in Q3 which decreased Adjusted EBITDA by approximately $180 million, normalized Q3 Adjusted EBITDA of $2.7 billion, up 2% year-on-year and down 3% quarter-on-quarter

Hotel occupancy for Q3 across the seven hotels was 98%

StarWorld Macau: Well Positioned for Future Growth

Q3 Net Revenue of $1.3 billion, up 9% year-on-year and up 1% quarter-on-quarter

Q3 Adjusted EBITDA of $396 million, up 14% year-on-year, up 2% quarter-on-quarter

Played lucky in Q3 which increased Adjusted EBITDA by approximately $15 million, normalized Q3 Adjusted EBITDA of $381 million, up 9% year-on-year and up 7% quarter-on-quarter

Hotel occupancy for Q3 was 100%

Broadway Macau™, City Clubs and Construction Materials Division ("CMD")

Broadway Macau™: Q3 Adjusted EBITDA was $11 million, versus $(14) million in Q3 2023 and $8 million in Q2 2024

City Clubs: Q3 Adjusted EBITDA was $6 million, up 20% year-on-year and up 20% quarter-on-quarter

CMD: Q3 Adjusted EBITDA was $214 million, up 30% year-on-year and down 16% quarter-on-quarter

Balance Sheet: Healthy and Liquid Balance Sheet

As at 30 September 2024, cash and liquid investments were $28.6 billion and the net position was $27.4 billion after debt of $1.2 billion

Paid an interim dividend of $0.50 per share on 25 October 2024

Development Update: Opening Capella at Galaxy Macau in mid-2025; Ramping up Galaxy International Convention Center ("GICC"), Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau; Progressing with Phase 4

Announced the opening of Capella at Galaxy Macau in mid-2025

Cotai Phase 3, Ramping up 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 entertainment, family facilities and also includes gaming

Market Overview

Based on DICJ reporting, Macau's Gross Gaming Revenue ("GGR") for Q3 2024 was $54.0 billion, up 14% year-on-year and down 1% quarter-on-quarter. In Q3 2024, visitor arrivals to Macau were 9.2 million, up 11% year-on-year and up 17% quarter-on-quarter. Visitor arrivals from the Mainland were 6.7 million, up 15% year-on-year and up 27% quarter-on-quarter. In the first three quarters, visitors from Mainland China up 36% year-on-year and visitor arrivals from the 10 cities that were newly added to the Individual Visit Scheme (IVS) surged by 54% year-on-year. Further, international visitors were up 95% for the same period.

Group Financial Results

In Q3 2024, the Group posted Net Revenue of $10.7 billion, up 11% year-on-year and down 2% quarter-on-quarter. Adjusted EBITDA was $2.9 billion, up 6% year-on-year and down 7% quarter-on-quarter. Galaxy Macau™'s Adjusted EBITDA was $2.6 billion, flat year-on-year and down 8% quarter-on-quarter. StarWorld Macau's Adjusted EBITDA was $396 million, up 14% year-on-year and up 2% quarter-on-quarter. Broadway Macau™'s Adjusted EBITDA was $11 million, versus $(14) million in Q3 2023 and $8 million in Q2 2024. Latest twelve months Adjusted EBITDA for the Group was $11.8 billion, up 68% year-on-year and up 1% quarter-on-quarter.

During Q3 2024, GEG played unlucky in its gaming operations which decreased Adjusted EBITDA by approximately $165 million. Normalized Adjusted EBITDA was $3.1 billion, up 7% year-on-year and down 3% quarter-on-quarter.

Summary Table of GEG Q3 2024 Adjusted EBITDA and Adjustments:

in HK$'m

Q3 2023

Q2 2024

Q3 2024

YoY

QoQ

Adjusted EBITDA

2,768

3,176

2,940

6%

-7%

Luck1

(122)

(20)

(165)

-

-

Normalized Adjusted EBITDA

2,890

3,196

3,105

7%

-3%

The Group's total GGR in Q3 2024 was $10.2 billion, up 16% year-on-year and down 2% quarter-on-quarter. Mass GGR was $8.4 billion, up 13% year-on-year and up 1% quarter-on-quarter. VIP GGR was $1.1 billion, up 35% year-on-year and down 21% quarter-on-quarter. Electronic GGR was $666 million, up 35% year-on-year and up 1% quarter-on-quarter.

Group Key Financial Data

 

 

 

(HK$'m)

Q3 2023

Q2 2024

Q3 2024

Revenues:

 

 

 

Net Gaming

7,417

8,595

8,197

Non-gaming

1,520

1,483

1,666

Construction Materials

713

840

805

Total Net Revenue

9,650

10,918

10,668

Adjusted EBITDA

2,768

3,176

2,940

 

 

 

 

Gaming Statistics2

 

 

 

(HK$'m)

 

 

 

 

Q3 2023

Q2 2024

Q3 2024

Rolling Chip Volume3

32,459

46,155

44,459

Win Rate %

2.5%

3.0%

2.5%

Win

813

1,391

1,100

 

 

 

 

Mass Table Drop4

29,906

32,370

31,726

Win Rate %

24.9%

25.6%

26.4%

Win

7,441