Galaxy Entertainment Group (27) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue rose 11% year-over-year to HK$10.7 billion, with adjusted EBITDA up 6% to HK$2.9 billion and normalized EBITDA at HK$3.1 billion, up 7% year-over-year.

• Strong balance sheet with HK$28.6 billion in cash and liquid investments, net position of HK$27.4 billion after HK$1.2 billion debt.

• Interim dividend of HK$0.50 per share paid on 25 October 2024, reflecting confidence in long-term outlook.

• Major development projects progressing, including Capella at Galaxy Macau (opening mid-2025) and Phase 4 focused on non-gaming and entertainment.

• Strong visitor arrivals during National Day Golden Week, with hotel occupancy at 95% and daily arrivals nearly at pre-pandemic levels.

Financial highlights

• Q3 net revenue: HK$10.7 billion (up 11% YoY, down 2% QoQ); adjusted EBITDA: HK$2.9 billion (up 6% YoY, down 7% QoQ); normalized adjusted EBITDA: HK$3.1 billion (up 7% YoY).

• Latest twelve months adjusted EBITDA: HK$11.8 billion, up 68% year-over-year.

• Total GGR: HK$10.2 billion (up 16% YoY, down 2% QoQ); mass GGR: HK$8.4 billion (up 13% YoY, up 1% QoQ); VIP GGR: HK$1.1 billion (up 35% YoY, down 21% QoQ).

• Non-gaming revenue in Q3: HK$1.67 billion, up from HK$1.52 billion in Q3 2023.

• Cash and liquid investments as of 30 September 2024: HK$28.6 billion; net position after debt: HK$27.4 billion.

Outlook and guidance

• Capella at Galaxy Macau to open mid-2025; Phase 4 to complete in 2027, adding hotels, theater, non-gaming amenities, and a casino.

• Management remains confident in Macau's long-term growth, supported by government stimulus and infrastructure improvements.

• Continued ramp-up of GICC, Galaxy Arena, Raffles, and Andaz Macau; more entertainment events scheduled for Q4 2024.