Galaxy Entertainment Group (GEG) has announced a substantial increase in gross gaming revenues, achieving HK$10.3 billion (US$1.32 billion) for the second quarter of 2024. This marks a significant 35.0% rise from the previous year and a 7.4% increase from the preceding quarter, heralding it as the largest quarter post-COVID.
Key performance highlights:
The strong performance in the second quarter was primarily fueled by Galaxy Macau, which saw a notable 39.5% year-on-year increase in gross gaming revenue (GGR) to HK$8.86 billion (US$1.14 billion). The mass table win contributed significantly with HK$8.29 billion (US$1.06 billion), up 31.9% from last year. Rolling chip win and slot win also saw impressive gains, growing by 49.4% and 48.5% to HK$1.39 billion (US$178 million) and HK$658 million (US$84.5 million) respectively.
Adjusted EBITDA for GEG rose to HK$3.18 billion (US$408 million), marking an increase of 28.4% year-on-year and 12.0% sequentially. The EBITDA margin at Galaxy Macau was a robust 32%, demonstrating the resort’s efficiency and profitability.
At StarWorld Macau, located on the Macau peninsula, GGR increased by 13.6% year-on-year to HK$1.42 billion (US$182 million), with an Adjusted EBITDA of HK$390 million (US$50 million) and an EBITDA margin of 29%. Lesser details were provided for Broadway Macau and Mocha Clubs, though it was noted that Broadway doubled its Adjusted EBITDA from the first quarter to HK$8 million (US$1 million), and Mocha Clubs experienced a 25% sequential increase in EBITDA to HK$5 million (US$642,000).
Innovations and expansion plans:
GEG is making strides in technology integration within its operations. The company has advanced the implementation of smart table technology, with significant progress in backend systems integration and customer database transfers. “We successfully completed live back-of-house pilot testing of smart tables,” stated Dr. Lui Che Woo, GEG Chairman. The rollout of these smart tables began across the main gaming floor of Galaxy Macau in early July, with completion expected by year-end.
Additionally, GEG is preparing for the opening of its next hotel, Capella at Galaxy Macau, slated for mid-2025. The development of Galaxy Macau Phase 4 is underway, focusing on non-gaming attractions, including entertainment and family facilities, along with some additional gaming areas.
Dr. Lui expressed satisfaction with the company’s performance, noting that both in the second quarter and the first half of 2024, the resort hotels reported nearly 100% occupancy. As Inside Asian Gaming reports, he added: “We successfully completed live back-of-house pilot testing of smart tables. In early July, we commenced the rollout of smart tables across Galaxy Macau’s main gaming floor. We anticipate completing the full rollout by year end.”
This robust performance underscores GEG’s strong recovery and strategic positioning in the post-COVID landscape, setting a promising trajectory for continued growth in Macau’s gaming and hospitality sector.