Leading Macau’s Non-Gaming Diversification Through Mice, Entertainment Events And Live Sports

Capella At Galaxy Macau Fitting Out – Mid Year Opening

Q4 2024 Group Adjusted EBITDA Up 15% YoY And Up 10% QoQ To $3.2 Billion

FY2024 Group Adjusted EBITDA Up 22% YoY To $12.2 Billion

FY2024 Group NPAS Up 28% YoY to $8.8 Billion

Recommends A Final Dividend Of $0.50 Per Share

HONG KONG, Feb. 27, 2025 (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 2024. (All amounts are expressed in HKD unless otherwise stated)

Mr. Francis Lui, Chairman of GEG said,

“Before I update you on GEG’s performance in 2024, I would like firstly to acknowledge the passing of Dr. Lui Che Woo in November 2024. As the founding Chairman of GEG his vision was to build GEG into a globally recognized Asia’s leading gaming and entertainment corporation. He certainly achieved his vision and he was an inspiration to us all.

Throughout 2024 we continued to drive every segment of the business in particular the premium mass which remains the main profit driver. In a competitive market we continue to allocate resources with discipline and focus on their most efficient use. GEG believes in competing with excellent products and service and not on price. Our efforts are reflected in the Group achieving full year Adjusted EBITDA of $12.2 billion, up 22% year-on-year. Full year Net Profit Attributable to Shareholders (“NPAS”) was $8.8 billion, up 28% year-on-year.

We have a strong, healthy and liquid balance sheet with cash and liquid investments of $31.3 billion, with minimal debt of $4.2 billion giving a net position of $27.1 billion. This financial strength allows GEG to fund our development pipeline, actively explore international development opportunities and return capital to shareholders via dividends. On 25 October 2024, we paid an interim dividend of $0.50 per share which was an increase from $0.30 per share paid in April 2024. Subsequently the GEG Board recommends a final dividend of $0.50 per share payable in June 2025. These dividends demonstrate our continued confidence in the longer-term outlook of Macau and for the Company.

GEG has been working with the MGTO to actively promote Macau as an international tourist destination. We previously announced the opening of offices in Tokyo, Seoul and Bangkok. In 2024 international visitor arrivals to Macau increased by 66% year-on-year to 2.4 million. We will continue to work with the MGTO and support this important initiative.

During the year we have seen entertainment and events play an important role in driving new and repeat customers to Macau. It has been estimated that during 2023 Macau in total hosted 240 concerts which generated an estimated MOP1.1 billion in ticket sales. The Galaxy International Convention Center (“GICC”) and Galaxy Arena have played an important role in this emerging trend, in 2024 GEG hosted approximately 460 shows and events, including numerous major events such as Andy Lau World Tour, Ultimate Fighting Championship (“UFC”), International Table Tennis Federation (“ITTF”) World Cup and Women’s Volleyball Nations League, among others.

Looking forward in 2025, we will host a number of major sporting and entertainment events such as the world-renowned legendary Italian tenor, Andrea Bocelli at Galaxy Arena this March and the ITTF World Cup 2025 in April. Further, Hong Kong famous singer Mr. Jacky Cheung will bring his 10th concert tour to Galaxy Arena in June. We are also hosting the scheduled Extraordinary General Assemblies and Conference of the Fédération Internationale de l’Automobile (FIA) which is to be co-hosted by Automobile General Association Macao-China (“AAMC”) and GEG this June at GICC, marking the first time of this world class annual event in Asia.   

GEG is well positioned to continue to capitalize on this trend of increased entertainment in Macau and our experience over the past year has been that major events drive a significant increase in visitors to our resorts resulting in increased gaming activity, retails sales, food and beverage revenue and hotel demand. Galaxy Arena is the largest indoor arena in Macau with 16,000 seating capacity.

In May 2024, the Central Government further expanded the Individual Visit Scheme (“IVS”) to 59 eligible cities with a total combined population of approximately 500 million people. Starting in 2025, Zhuhai residents are able to apply for a "one-trip-per-week" visa to Macau, and Hengqin residents are eligible for multiple visa entries to Macau. We view this as a positive development and look forward to further policy relaxations in the future. Macau's light rail transit system (“LRT”) opened a new line from the Hengqin port to Cotai in December 2024, which we believe will complement the visa relaxation and encourage Zhuhai residents to visit Macau more frequently.

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

During the year we deployed smart tables across all of our casinos. We expect this technology to enhance the overall operating efficiency and customer management. In addition, we continue to make enhancements to our resorts including adding new F&B and retail offerings at Galaxy Macau™. In the recently announced Forbes Travel Guide 2025 List, Galaxy Macau™ proved its unrivalled position as the integrated resort with the most Five-Star hotels under one roof of any luxury resort company worldwide for the third consecutive year. Galaxy Macau™ was also named Best Integrated Resort in the Asia Pacific region for consecutive years by Inside Asian Gaming since the award inauguration. At StarWorld Macau we are evaluating a range of major upgrades, that includes the main gaming floor, the lobby arrival experience and increasing the F&B options. We have completed the upgrade of Level 3 and StarWorld Macau now hosts one of the largest scale Live Table Games (“LTG”) terminals in Macau.

We welcomed President Xi Jinping visit to Macau in December 2024 and the inauguration of Mr. Sam Hou Fai as the Chief Executive of Macau SAR. GEG will continue to work closely with the Government to diversify Macau’s economy and develop 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 2024 RESULTS HIGHLIGHTS

GEG: Well Positioned for Future Growth

• Full Year Group Net Revenue of $43.4 billion, up 22% year-on-year
• Full Year Group Adjusted EBITDA of $12.2 billion, up 22% year-on-year
• Full Year Group NPAS of $8.8 billion, up 28% year-on-year
• Q4 Group Net Revenue of $11.3 billion, up 9% year-on-year and up 6% quarter-on-quarter
• Q4 Group Adjusted EBITDA of $3.2 billion, up 15% year-on-year and up 10% quarter-on-quarter
• Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $35 million, normalized Q4 Adjusted EBITDA was $3.3 billion, up 12% year-on-year and up 5% quarter-on-quarter

Galaxy Macau™: Primary Driver to Group Earnings

• Full Year Net Revenue of $34.5 billion, up 24% year-on-year
• Full Year Adjusted EBITDA of $10.8 billion, up 18% year-on-year
• Q4 Net Revenue of $9.1 billion, up 12% year-on-year and up 9% quarter-on-quarter
• Q4 Adjusted EBITDA of $2.8 billion, up 11% year-on-year and up 11% quarter-on-quarter
• Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $27 million, normalized Q4 Adjusted EBITDA of $2.9 billion, up 7% year-on-year and up 5% quarter-on-quarter
• Hotel occupancy for Q4 across the seven hotels was 98%

StarWorld Macau: Continuing with Major Property Upgrades

• Full Year Net Revenue of $5.3 billion, up 15% year-on-year
• Full Year Adjusted EBITDA of $1.6 billion, up 24% year-on-year
• Q4 Net Revenue of $1.3 billion, up 3% year-on-year and down 4% quarter-on-quarter
• Q4 Adjusted EBITDA of $363 million, up 3% year-on-year and down 8% quarter-on-quarter
• Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $8 million, normalized Q4 Adjusted EBITDA of $371 million, up 6% year-on-year and down 3% quarter-on-quarter
• Hotel occupancy for Q4 was 100%

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

• Broadway Macau™: Full Year Adjusted EBITDA of $24 million, versus $(36) million in 2023. Q4 Adjusted EBITDA was $1 million, versus $(2) million in Q4 2023 and $11 million in Q3 2024
• City Clubs: Full Year Adjusted EBITDA of $14 million, down 7% year-on-year. Q4 Adjusted EBITDA was $(1) million, versus $3 million in Q4 2023 and $6 million in Q3 2024.
• CMD: Full Year Adjusted EBITDA of $857 million, up 23% year-on-year. Q4 Adjusted EBITDA was $277 million, up 35% year-on-year and up 29% quarter-on-quarter

Balance Sheet: Maintain a Healthy and Liquid Balance Sheet

• As at 31 December 2024, cash and liquid investments were $31.3 billion and the net position was $27.1 billion after debt of $4.2 billion
• Paid two dividends totaled $0.80 per share in 2024
• The GEG Board recommends a final dividend of $0.50 per share payable in June 2025

Development Update: Capella at Galaxy Macau is targeted to open in mid-2025; Continue ramping up GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau; Progressing with Phase 4

• Capella at Galaxy Macau is targeted to open 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 which has a strong focus on non-gaming, primarily targeting entertainment, family facilities and also includes gaming
• International – Continuously exploring opportunities in overseas markets

Macau Market Overview

Based on DICJ reporting, Macau’s Gross Gaming Revenue (“GGR”) for full year 2024 was $220.2 billion, up 24% year-on-year, and represented 78% of 2019 level. GGR in Q4 2024 was $55.8 billion, up 6% year-on- year and up 3% quarter-on-quarter.

In 2024, visitor arrivals to Macau were 34.9 million, up 24% year-on-year, recovering to 89% of 2019. Mainland visitor arrivals to Macau were 24.5 million, up 29% year-on-year, with IVS visitors of 12.3 million, up 16% year-on-year. GEG has been working with the MGTO to actively promote Macau as an international tourist destination. We previously announced the opening of offices in Tokyo, Seoul and Bangkok. During the year international visitor arrivals to Macau increased by 66% from 1.5 million in 2023 to 2.4 million in 2024. We will continue to work with the MGTO and support this important initiative.

Group Financial Results

Full Year 2024

The Group posted Net Revenue of $43.4 billion, up 22% year-on-year. Adjusted EBITDA was $12.2 billion, up 22% year-on-year. NPAS was $8.8 billion, up 28% year-on-year. Galaxy Macau™’s Adjusted EBITDA was $10.8 billion, up 18% year-on-year. StarWorld Macau’s Adjusted EBITDA was $1.6 billion, up 24% year-on-year. Broadway Macau™’s Adjusted EBITDA was $24 million, versus $(36) million in 2023.

In 2024, GEG played unlucky in its gaming operation which decreased its Adjusted EBITDA by approximately $157 million. Normalized Adjusted EBITDA was $12.3 billion, up 22% year-on-year.

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