Operator News

China – Galaxy bounces back with 53 per cent year-on-year improvement in 2021

By Phil - 23 February 2022

Macau operator Galaxy Entertainment posted Net Revenue of $19.7bn, up 53 per cent year-on-year. Adjusted EBITDA was $3.5bn versus $1bn in 2020, which included a one-off expense reversal benefit of $0.2bn in Q4 2021.

Net profit attributable to shareholders was $1.3bn versus $4bn in 2020. Galaxy Macau’s Adjusted EBITDA was $2.9bn versus $0.9bn in 2020. StarWorld Macau’s Adjusted EBITDA was $374m versus $275m in 2020. Broadway Macau’s Adjusted EBITDA was $84m versus $162m in 2020.

GEG played lucky in its gaming operation during 2021, which increased its Adjusted EBITDA by approximately $253m. In addition, the Group experienced a one-off expense reversal benefit of $0.2bn, normalized Adjusted EBITDA was $3.1bn versus $1.1bn in 2020.

The Group’s total GGR on a management basis1 in 2021 was $17.3bn, up 51 per cent year-on-year. Mass GGR was $11.2bn, up 83 per cent year-on-year. VIP GGR was $5.5bn, up 11 per cent year-on-year. Electronic GGR was $642m, up 35 per cent year-on-year.

Chairman Dr. Lui Che Woo said: “The Group’s Net Revenue, Adjusted EBITDA and net profit attributable to shareholders (NPAS) all improved in 2021 relative to 2020. Our balance sheet also remained healthy and we are well positioned to navigate through the pandemic. Further, we announced a special dividend of HK$0.30 per share to be paid on or about 29 April 2022. This attests to our confidence in Macau, our financial strength and our future earnings potential.

“We were encouraged by the performance over the recent Chinese New Year holiday. Even though visitor arrivals were less than anticipated due to travel restrictions, gaming revenue was solid, driven by premium mass, hotel occupancy was higher and retails sales were strong. This is evidence of strong pent up demand for tourism and leisure in Macau.

“During this economically challenging period, GEG continued to invest in the advancement of Macau’s economy with our Cotai Phases 3 and 4 developments and renovating and upgrading our existing resort facilities where we intend to align the openings with the prevailing market conditions. We continue to pursue our project in Hengqin and are expanding our focus beyond Hengqin and Macau to potentially include opportunities within greater China including the rapidly developing Greater Bay Area.

“In January 2022, the Macau Legislative Assembly passed its first reading of the “Legal Framework for the Exploitation of Games of Chance in Casino” and the Legislative Assembly Standing Committee is now going through a committee discussion. GEG fully supports the proposed legislation including that national and Macau security should be put as the top priority and the economic diversification and sustainable development should be a primary consideration.”