Operator News

China – Galaxy’s 2023 GGR spikes by 322 per cent as both mass and VIP make comeback

By Phil - 28 February 2024

Macau casino operator Galaxy Entertainment continue to bounce back from the pandemic generating revenue of $35.7bn in 2023, up a staggering 211 per cent year-on-year.

The Group’s total GGR on a management basis in 2023 was $31.7bn, up 322 per cent year-on-year. Mass GGR was $26.5bn, up 328 per cent year-on-year. VIP GGR was $3.4bn, up 273 per cent year-on-year. Electronic GGR was $1.8bn, up 340 per cent year-on-year.

The year ended strongly for Galaxy with fourth quarter revenues coming in at $10.3bn, marking an increase of 254 per cent year-on-year and up seven per cent quarter-on-quarter. GGR in Q4 2023 was $52.5bn, up 421 per cent year-on-year and up 11 per cent quarter-on-quarter.The surge in revenue was driven by Galaxy Macau and StarWorld where revenues came in at $27.7bn, up 274 per cent year-on-year at Galaxy, and at $4.6bn, up 343 per cent year-on-year at StarWorld. Galaxy Macau’s Adjusted EBITDA was $9.1bn, versus $295m in 2022. StarWorld Macau’s Adjusted EBITDA was $1.3bn versus $527m in 2022. The growth wasn’t felt though at the company’s Broadway Macau development where EBITDA fell to $36m from $62m in 2022 or at the company’s CityClubs slot halls where EBIDTA came in at $15m, versus $21m in 2022.

Dr. Lui Che Woo, Chairman of GEG said: “We continue to drive every segment of the business with a particular focus on the mass business and continue to allocate resources to their most efficient use. Our efforts are reflected in full year Adjusted EBITDA of $10bn, versus $0.6bn in 2022. This was despite continuing competition in both Macau and regionally and a number of geo-political and economic issues that impacted consumer sentiment.

“We had a busy year with the completion of multiple development projects. These included the opening of the 450 all-suite Raffles at Galaxy Macau and the new premium mass Horizon Club, the opening of both the Galaxy International Convention Centre (GICC) and Galaxy Arena. The progressive opening of Andaz Macau was fully opened prior to Chinese New Year 2024. In 2023, GEG held approximately 200 MICE events and 85 concerts and performances across GICC, Galaxy Arena and Broadway Theatre.”

“Moving to Phase 4, we continue to progress with its construction. Phase 4 is approximately 600,000 square meters of development and is scheduled to complete in 2027. Phase 4 will include multiple high-end hotel brands new to Macau, together with a 4000-seat theater, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino, which is targeted to capture the ongoing expanding market that seeks a more encompassing lifestyle experience.”

“Furthermore, we are actively working with the MGTO to develop international markets. We are aligning our business accordingly and supporting the Government’s vision. Non-gaming is focused on attracting a broader range of customers to our resorts, leveraging our existing facilities and growing the overall market. These efforts will take time and we are doing our best. GEG has opened overseas offices in Tokyo and Seoul in 2023, and will soon be opening another office in Bangkok. The competition for high-value international tourists is significant and we will strive to support this Government initiative.”

“Macau’s Gross Gaming Revenue (GGR) for 2023 exceeded MOP180bn. In accordance with the gaming concession agreement, the six concessionaires will increase their investment commitments by 20 per cent over the term of the concession. This demonstrates our support to the Government in developing Macau into the World Centre of Tourism and Leisure.”

“We are now firmly focused on the development of Phase 4, which is already well under way. Phase 4 will include multiple high-end hotel brands new to Macau, together with a 4000-seat theater, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino. Phase 4 is approximately 600,000 square meters of development and is scheduled to complete in 2027. We will continue to adjust the development timeline in accordance with the market demand. We remain highly confident about the future of Macau where Phases 3 & 4 will support Macau’s vision of becoming a World Centre of Tourism and Leisure,” he added.

Caption: Phase 4 of Galaxy Macau