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End of Macau restrictions pushes Galaxy Entertainment revenue up 70%

| By Marese O'Hagan
Galaxy Entertainment Group (GEG) has reported revenue of HK$7.05bn (£724.0m/€833.1m) in the first quarter of the year, a 72.0% rise bolstered by the ending of Covid-19 restrictions in Macau.
Macau March

Dr Lui Che Woo, chairman of Galaxy, said that there had been growth in all operational areas since the ending of Covid-19 restrictions on 8 January 2023.

“It has been very pleasing to see solid pent-up customer demand following the relaxation of travel restrictions,” said the chairman. “Visitor arrivals, hotel occupancy, gaming revenue and retail sales have all seen good growth.”

Woo added that Galaxy had submitted its plans for investment to the Macau government during the quarter, a stipulation outlined in the Macau government’s concession bid process that concluded in December 2022.

Galaxy received a concession, alongside Las Vegas Sands, MGM Resorts International, Melco Resorts, SJM Resorts and Wynn Resorts.

“We have submitted our investment plans to the Macau government for the next 10 years and are in active discussions with the government to refine those investment plans,” he continued.

“We are confident that the final mutually agreed plans will further diversify and broaden GEG’s non-gaming offerings, attract a more diverse customer base including international visitors and support the Macau government’s vision of becoming the world centre of tourism and leisure.”

First quarter results

The net revenue rose by 141.9% quarter-on-quarter.

The net revenue consisted of HK$5.32bn in net gaming revenue, up by 83.4% yearly. Non-gaming revenue grew by 65.8% to HK$1.0bn, while revenue from construction materials rose by 21.4% to HK$698m.

In terms of locations, Galaxy Macau generated HK$5.34bn of the net revenue. StarWorld Macau made up HK$938m, while Broadway Macau brought in HK$18m.

GEG’s City Clubs net revenue was $52m, up by 550.0% year-on-year.

Total adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was HK$1.91bn for the quarter, a jump of 231.6%.

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