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Revenue down 42% YoY at Galaxy

| By Marese O'Hagan
Galaxy Entertainment Group has reported revenue of HK$11.47bn (£1.21bn/€1.38bn) for its full-year 2022 results – a dramatic loss of 41.7% yearly – in a period that was continually affected by Covid-19 restrictions.

Dr Lui Che Woo, chairman of Galaxy Entertainment, said the operator had continued to experience the impact of Covid-19 throughout the year – but added that the end of travel restrictions would add a positive element to the year ahead.

“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,” he said. “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.”

The chairman also commented on Galaxy receiving a concession from the Macau government last year.

“Additionally, we are delighted to have been awarded a new gaming concession by the Macau government which will be valid to 31 December 2032,” he continued. “Over the next 10 years, Galaxy will invest nearly MOP28.4 billion to enhance the facilities and services of its integrated resorts, of which over 96% of the total investment will be used for non-gaming projects and exploring overseas customer markets.”

Galaxy was one of six operators to receive a concession, in a tense bidding process that ultimately saw Genting left out in the cold.

Full-year results

Turning to Galaxy’s full-year results, most of the revenue came from net gaming, totalling at HK$6.56bn. This was down by 53.1% – more than half – of the net gaming revenue for 2021.

Non-gaming revenue was HK$2.02bn, down by 24.1% from 2021, while revenue from construction materials dropped 4.4% to HK$2.88bn.

More than half the total net revenue for the year – HK$7.41bn – came from the operator’s Galaxy Macau location. This was a decrease of 43.6% yearly.

StarWorld Macau contributed HK$1.04bn to the net revenue, another significant decline of 68.0%.

Net revenues from Galaxy’s Broadway Macau and City Clubs locations were HK$60m and HK$61m respectively.

The company’s construction materials division also generated earnings before interest, tax, depreciation and amortisation (EBITDA) of HK$566m, a decrease of 42%.

Fourth quarter

For the fourth quarter alone, net revenue was HK$1.83bn. This was up by 71.3% compared to the previous quarter, but was a decrease of 42.9% year-on-year.

This trend of significant monthly growth coupled with year-on-year decreases continued across the board.

Most of the net revenue came from net gaming revenue at HK$1.37bn, a rise of 107.8% month-on-month but a fall of 47.0% yearly.

Hotel and food and beverage revenue at HK$208m, alongside mall revenue of HK$248m, made up the remaining net total.

Galaxy Macau reported HK$1.83bn in revenue for the period, up by 71% from Q3 but down 42.9% from Q4 2021.

StarWorld Macau reported revenue of HK$246m for the fourth quarter. This represented quarter-on-quarter growth of 55.7% and a yearly decline of 63.2%.

Broadway Macau generated HK$19m in net revenue for the quarter, while City Clubs reported HK$20m.

Adjusted EBITDA at the company’s construction materials division was HK$160m for the quarter.

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