CLAIMS TO FAME
- Built Galaxy into Macau’s de facto local gaming champion
- Continuing to build out largest single land plot in Cotai via Galaxy Macau
- Holds strategic stakes in Monte Carlo casino operator SBM and Wynn Resorts
It’s been quite a year for Galaxy Entertainment Group. Coming off a slow and steady recovery from the pandemic years in 2023, the company has made significant moves towards reclaiming its Crown as Macau’s No.1 operator – clawing back in recent months some of the market share it had lost to its aggressive competitors.
One of the key reasons for this recovery has been the opening of Galaxy Macau Phase 3 late last year, including the 700-room Andaz, 450-suite Raffles and new premium gaming space that analysts claim is already a crowd favorite. Construction of Galaxy Macau Phase 4, due for completion in 2026, continues at speed and will further grow Galaxy Macau’s hotel room inventory from 5,000 currently to around 6,600 rooms – making it comfortably the largest single integrated resort offering in the SAR. A ninth hotel brand, Capella at Galaxy Macau, is slated to open in mid-2025, the company announced a few months back.
While GEG’s Macau market share fell as low as 17.4% earlier this year, recent indications suggest that has already climbed back towards 20%, aided by a shake-up of its salesforce and a reconfiguration of the main gaming floor at Galaxy Macau.
This improvement has been reflected in GEG’s financial results. The three months to 30 June 2024 represented its best quarter since COVID, with gross gaming revenues climbing by 7.4% sequentially and 35.0% year-on-year to HK$10.3 billion (US$1.32 billion), with Adjusted EBITDA of HK$3.18 billion (US$408 million).
That’s great news not only for Vice Chairman Francis Lui but also for the company’s investors: the HK$0.50 Interim Dividend GEG declared in August is the highest dividend per share it has paid since declaring a HK$0.70 dividend way back in July 2014.
GEG was the first of Macau’s concessionaires to resume payment of dividends in 2023, highlighting the strength of the company’s balance sheet during a time when so many of its peers were forced to borrow heavily to survive.
Now back doing what it does best, GEG continues to take a carefully considered pathway forward. Lui has previously stated the company’s intentions to primarily focus on Macau, having withdrawn from potential opportunities in both Japan and the Philippines in recent years – although Thailand could be of interest should legislation pass as expected.
Certainly Lui isn’t one to bypass the right investment, having taken strategic interests in both Wynn Resorts and Monte Carlo SBM that provide some welcome diversification for the future.
It’s a future that appears to be particularly bright.
For the full list of 2024 Asian Gaming Power 50 winners, click here.
