Galaxy Entertainment Group (GEG) generated HKD35.68 billion ($4.56 billion) in revenue in 2023, a 211% increase, owing to the full reopening of the Macau gaming market.
In January last year, Macau withdrew all remaining pandemic travel and quarantine restrictions, which meant that people could travel freely in and around the gambling hub to spend money at its casinos, including Galaxy Macau.
The relaxation led to increased revenue for Galaxy and its operations. Galaxy Macau saw an increase in revenue by 274.3% year-on-year in 2023, with gaming revenue up by 312.1%.
The city also witnessed growth across other operations in Macau, despite increased competition in the region. GEG chairman Lui Che Woo praised the 2023 performance in a statement.
“At GEG, 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,” Woo said. “Our efforts are reflected in full-year adjusted EBITDA growth. This was despite continuing competition in both Macau and regionally and a number of geopolitical and economic issues that impacted consumer sentiment.”
A 2023 full of novelties
Among Galaxy’s highlights for 2023 was the introduction of the 450 all-suite Raffles at Galaxy Macau and premium mass Horizon Club, and both the Galaxy International Convention Centre (GICC) and Galaxy Arena. The Andaz Macau also fully opened before the Chinese New Year 2024.
Meanwhile, work for phase four of development for a new integrated resort in Macau is currently ongoing. “Phase 4 is approximately 600,000 square meters of development and is scheduled to complete in 2027,” the chairman said.
“Phase 4 will include multiple high-end hotel brands new to Macau, together with a 4000-seat theater, extensive food and beverage options, 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,” added Woo.
According to the chairman, the focus on non-gaming elements aims at attracting a broader range of customers to the company’s resorts, leveraging existing facilities and growing the overall market. Woo noted the efforts will “take time.”
“GEG has opened overseas offices in Tokyo and Seoul in 2023, and will soon be opening another office in Bangkok,” he added. “The competition for high-value international tourists is significant and we will strive to support this government initiative.”
Galaxy’s financial highlights for 2023
The group’s net gaming revenue at Galaxy increased 315.6% to HKD27.29 billion ($3.5 billion) in 2023. The non-gaming revenue hiked 167% to HKD5.40 billion ($690 million) and construction material revenue rose by 3.8% to HKD3 billion ($383 million).
Galaxy Macau’s revenue totaled HKD27.72 billion ($3.5 billion), far exceeding the HKD7.42 billion ($948 million) generated in 2022 when pandemic restrictions hampered the region. This included HKD22.91 billion ($2.9 billion) in gaming revenue, HKD3.25 billion ($415 million) in non-gaming revenue, and HKD1.56 billion ($199 million) in construction materials.
The revenue of StarWorld Macau also increased 56.9% to HKD4.64 billion ($593 million), again contributed by the removal of COVID-19 restrictions. Out of this total, HKD4.15 billion ($530 million) was attributed to gaming activity, up by 339.6%.
In addition, revenue from the Broadway Macau entertainment and street resort jumped 72.0% to HKD103 million ($13 million), while City Clubs revenue increased 264.0% to HKD222 ($28 million).
While Galaxy did not provide a full breakdown of costs, tax, and net profit for the year, it stated that the revenue growth helped drive adjusted EBITDA up from a loss of HKD0.60 billion in 2022 to a positive of HKD10.00 billion for 2023.
Late Last month, Lui Che Woo was announced as one of Hong Kong’s 10 Richest. Woo was worth $12.4 billion and ranked at the 7th position on the Forbes list. He is also the 153rd richest person in the world.