China – Galaxy shows sequential improvement of 97 per cent in mass and 164 per cent in VIPBy Phil - 24 February 2023
Macau casino operator Galaxy Entertainment posted revenue of $11.5bn, down 42 per cent year-on-year. Adjusted EBITDA was $0.6bn versus $3.5bn in 2021, leading to a loss of US$433m.
The good news came in the improved performance in the fourth quarter with revenues of US$229m, up 99 per cent on the previous quarter with mass GGR up 97 per cent quarter-on-quarter and VIP up 164 per cent quarter-on-quarter.
In 2022 gaming revenue was $7.5bn, down 57 per cent year-on-year. Mass GGR was $6.2bn, down 45 per cent year-on-year. VIP GGR was $923m, down 83 per cent year-on-year. Electronic GGR was $405m, down 37 per cent year-on-year.
In 2022, GEG played unlucky in its gaming operation which decreased its Adjusted EBITDA by approximately $33m. Normalized Adjusted EBITDA was $520m versus $3.2bn in 2021.
Galaxy Macau, the primary contributor to group revenue and earnings, generated revenue of $7.4bn, down 44 per cent year-on-year. Adjusted EBITDA was $295m, down 90 per cent year-on-year.
Galaxy Macau played unlucky in its gaming operations which decreased its Adjusted EBITDA by
approximately $33m. Normalized 2022 Adjusted EBITDA was $328m, down 88 per cent year-on-year.
The combined five hotels occupancy was 31 per cent for 2022
In 2022, StarWorld Macau’s Net Revenue was $1bn, down 68 per cent year-on-year. Adjusted EBITDA
was $527m versus $374m in 2021. Hotel occupancy was 38 per centfor 2022
Broadway Macau is a unique family friendly, street entertainment and food resort supported by Macau
SMEs. In 2022, Broadway Macau’s Net Revenue was $60m up five per cent year-on-year. Adjusted
EBITDA was $62m, versus $84m in 2021.
Dr. Lui Che Woo, CEO of Galaxy Entertainment, said: “Macau like the rest of the world continued to experience the impact of COVID-19 throughout 2022, with sporadic outbreaks in Mainland China, Macau and Hong Kong and the subsequent travel and quarantine restrictions impacting visitor arrivals. I am pleased to report that in early 2023 all the travel restrictions were lifted and Macau is well positioned to welcome Mainland and international visitors in 2023.
“We are pleased with the reopening of borders in early 2023. Macau has experienced solid demand and associated revenue and we were particularly encouraged by the performance over the Chinese New Year Golden Week. We are hopeful for a sustainable recovery and remain cautiously optimistic.
“We are pleased to confirm that Cotai Phase 3 is effectively completed and we continue with the development of Phase 4. We are scheduled to progressively open Phase 3 Galaxy International Convention Center (“GICC”), Galaxy Arena and Raffles at Galaxy Macau in Q2 2023, with our first MICE event being held in April 2023. This will be followed by world-class concerts K-Pop TREASURE and the highly popular BLACKPINK’s world tour to be held in our state-of-the-art Galaxy Arena. We will continue to monitor market conditions and when appropriate we will open Andaz Macau,” he added.
In 2022, visitor arrivals to Macau were 5.7m, down 26 per cent year-on-year. Overnight visitors decreased
33 per cent year-on-year. Mainland visitor arrivals to Macau were 5.1m, down 28 per cent year-on-year. For Q4 2022, visitor arrivals to Macau were 1.3 million, down 31 per cent year-on-year and up 49 per cent quarter-on-quarter, in which Mainland visitor arrivals were 1.2 million, down 35 per cent year-on-year and up 47 per cent quarter-on-quarter.