In a striking start to the year, Galaxy Entertainment and Paysafe have both revealed substantial revenue gains in the first quarter, according to recent reports. Galaxy Entertainment, in particular, showcased impressive growth in its gaming operations, which considerably elevated both its revenue and adjusted EBITDA. Concurrently, Paysafe experienced a robust uptick in its revenue figures, although its net earnings were impacted by adverse effects from foreign currency translation.
Entering the specifics, Galaxy Entertainment’s revenue for the three months ending March 31 stood at an impressive HK$10.60 billion, escalating by a hefty 49.6%. The surge was primarily driven by its gaming operations, from which it secured HK$8.18 billion, marking a 53.7% increase. The growth streak continued beyond gaming, with its non-gaming revenue experiencing a 55.5% increase to HK$1.61 billion and construction materials revenue climbing 9.6% to HK$765 million.
The lion’s share of Q1 revenue was generated by Galaxy Macau, which saw a 55.5% rise amounting to HK$8.31 billion. Out of this, a significant portion, at $6.89 billion, emanated from gaming operations. Galaxy attributed this growth to increased volumes of rolling chips and electronic gaming, as well as a higher mass table drop. Meanwhile, StarWorld Macau’s revenue ascended by 46.0% to HK$1.37 billion, and Broadway Macau’s revenue made a remarkable leap of 156.0% to HK$46 million. Additions came from the City Clubs division, which went up by 12.0%, contributing an additional HK$58 million in revenue.
While details on costs and profits were not fully disclosed, Galaxy did highlight a 48.7% jump in adjusted EBITDA for the quarter, reaching HK$2.84 billion. Galaxy’s chair, Lui Che Woo, expressed satisfaction with the company’s casino performance, especially with the May Golden Week and the reconfiguration of Galaxy Macau’s gaming floor. He also stressed the robust state of the company’s balance sheet, featuring HK$26.4 billion in cash and liquid investments and a net cash position of HK$25.0 billion after accounting for debt amounting to HK$1.4 billion.
Switching focus to Paysafe, CEO Bruce Lowthers heralded the opening quarter of 2024 as a “great start” for the company, despite a reported increase in net losses. Paysafe’s revenue witnessed an increment of 7.7%, summing up to US$417.7 million, buoyed by growth across its main business segments. Specifically, Merchant Solutions revenue soared by 11.0% to $231.4 million, while Digital Wallets revenue rose by 5.0% to $190.5 million. Meanwhile, $4.1 million in inter-segment revenue was excluded from the tally.
Lowthers emphasized the positive momentum from the company’s strategic actions and investments, which he believes set the stage for continued success going forward. Despite reported increases in various expense categories—the most significant being cost of services at $170.4 million, which was up by 7.2%—Paysafe managed to turn a pre-tax profit of $10.4 million. This was a considerable improvement from the mere $71,000 reported in the comparable quarter of the previous year. After tax deductions worth $7.3 million, the net profit was positioned at $3.1 million, albeit overshadowed by a negative foreign currency translation impact of $7.6 million, resulting in a comprehensive net loss of $4.6 million.
Notwithstanding the currency-related setbacks, Paysafe’s adjusted EBITDA exhibited a year-on-year increase of 3.8%, standing at $111.9 million. Lowthers conveyed continued confidence in the company’s financial outlook, citing stronger underlying revenue performance and enhanced operational execution.
Both Galaxy Entertainment and Paysafe’s reports evince that, despite varied challenges, significant revenue growth is possible with the right strategy—an optimistic sign for stakeholders as these companies navigate through financial year 2024.
