Galaxy Entertainment Group (27) Q2 2024 earnings summary

Executive summary

• Net revenue for 1H 2024 reached HK$21.5 billion, up 37% year-over-year, with adjusted EBITDA at HK$6.0 billion, also up 37% year-over-year; Q2 2024 net revenue was HK$10.9 billion, up 26% year-over-year and 3% quarter-on-quarter.

• Net profit attributable to shareholders for 1H 2024 was HK$4.4 billion, a 52% increase year-over-year.

• Virtually 100% hotel occupancy was achieved across resort hotels in both Q2 and 1H 2024.

• Interim dividend of HK$0.50 per share declared, payable in October 2024, following a special dividend of HK$0.30 per share paid in April.

• Strong balance sheet maintained with HK$29.0 billion in cash and liquid investments and a net position of HK$25.2 billion after debt.

Financial highlights

• Group net revenue for 1H 2024 was HK$21.5 billion (+37% YoY); adjusted EBITDA was HK$6.0 billion (+37% YoY); net profit attributable to shareholders was HK$4.4 billion (+52% YoY).

• Q2 2024 adjusted EBITDA reached HK$3.2 billion, up 28% year-over-year and 12% quarter-on-quarter, with a HK$20 million impact from unfavorable luck.

• Galaxy Macau: 1H 2024 net revenue HK$17.0 billion (+43% YoY), adjusted EBITDA HK$5.4 billion (+34% YoY), hotel occupancy 97%.

• StarWorld Macau: 1H 2024 net revenue HK$2.7 billion (+25% YoY), adjusted EBITDA HK$825 million (+43% YoY), hotel occupancy 100%.

• Broadway Macau: 1H 2024 net revenue HK$100 million (+144% YoY), adjusted EBITDA HK$12 million (vs. -HK$20 million in 1H 2023).

Outlook and guidance

• Capella at Galaxy Macau is targeted to open mid-2025; Phase 4 development, focusing on non-gaming and entertainment, is on track for completion in 2027.

• Full rollout of smart tables at Galaxy Macau expected by year-end 2024, aiming to enhance operational efficiency.

• Management remains confident in Macau’s long-term outlook, supported by government policy, infrastructure improvements, and expanded visitor schemes.

• Ongoing commitment to invest over MOP$33 billion in non-gaming facilities under the new concession.

• Continued focus on non-gaming investments and international expansion, with interest in integrated resort opportunities in Thailand.