The heralding of a new era in Macau was marked by the region’s withdrawal of all remaining pandemic travel and quarantine restrictions in January 2023, encouraging a significant influx of eager visitors. The easing of these limitations coincided with a rejuvenation of Macau’s economy, most notably seen in the bustling casino floors across the enclave, including those within the grand Galaxy Macau.
The impact of this strategic easing was nothing short of remarkable, catapulting the revenue of Galaxy Macau by a staggering 274.3% year-on-year. The gaming sector alone witnessed a meteoric rise of 312.1% in revenue. However, Galaxy was not the only beneficiary as various other operators in Macau also saw their fortunes change for the better.
While the entire region enjoyed this upswing, Galaxy’s surge in economic gains became a focal point of industry discussion and analysis. The conglomerate’s chairman, Lui Che Woo, expressed immense satisfaction with the outcomes of 2023, noting the strategic measures taken to emphasize growth across all sectors, notwithstanding a competitive marketplace.
“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,” explained Woo. “Our efforts are reflected in full-year adjusted EBITDA growth.” This commendable progress was achieved despite a multiplicity of challenges, including geopolitical tensions and economic uncertainties that dampened consumer confidence.
Galaxy’s trajectory of expansion and innovation didn’t wane despite these global challenges. In 2023, the corporation expanded its hospitality portfolio by inaugurating the luxurious 450 all-suite Raffles at Galaxy Macau and the elite premium mass Horizon Club. Additionally, the Galaxy International Convention Centre (“GICC”) and Galaxy Arena were launched, while the Andaz Macau threw open its doors in anticipation of the Chinese New Year 2024 celebrations.
Looking ahead, the corporation has laid out an ambitious blueprint for Phase 4 of development. This ambitious project, with a completion horizon set for 2027, envisions a new integrated resort that would encompass a state-of-the-art casino, diverse hotel offerings, a theatre, expansive retail spaces, and a plethora of non-gaming amenities including masterfully landscaped environs and a water resort deck.
Woo’s vision for Galaxy extends beyond gaming. “Non-gaming is focused on attracting a broader range of customers to our resorts, leveraging our existing facilities and growing the overall market,” he said. Tasked with the mission of broadening the customer base, Galaxy has instigated overseas offices in Tokyo and Seoul and is gearing up for another in Bangkok, all part of a concerted effort to tap into the lucrative market of high-value international tourists.
The fiscal year 2023 saw group net gaming revenue at Galaxy swell by 315.6% to reach $23.29bn. Non-gaming revenue followed suit, posting a boost of 167.0% to settle at $5.40bn, while construction material revenue also climbed, albeit modestly by 3.8%, to $3.00bn. A closer inspection of these figures reveals the dominant force of Galaxy Macau within the group, boasting revenue of $27.72bn, eclipsing the previous year’s $7.42bn total.
The upward trend was palpable across other Galaxy venues, such as StarWorld Macau, which recorded a 56.9% climb to $1.64bn in revenue, attributed in no small part to the relaxing of Covid-19 measures. Broadway Macau and City Clubs also enjoyed revenue hikes of 72.0% and 264.0% respectively, evidence of the across-the-board recovery facilitated by the region’s reopening.
While the company has not divulged a meticulous breakdown of costs, taxes, or net profit for the year, indicators such as the growth-driven adjusted EBITDA—which leapt from a 2022 loss of $0.60bn to an impressive $10.00bn gain in 2023—highlight the company’s turnaround.
The final quarter wasn’t bereft of success either, with Galaxy reporting Q4 revenues touching $10.30bn, a year-on-year increment of 253.9%. A detailed glimpse into the quarterly earnings saw Galaxy Macau alone clocking a 346.6% rise to $8.19bn. The StarWorld Macau results were even more dramatic, surging 410.2% to $1.26bn. Other entities within the Galaxy spectrum, such as Broadway Macau and City Clubs, also reported substantial hikes in their Q4 revenues.
Riding high on these promising figures, the adjusted EBITDA for the last quarter stood at $2.81bn, a stark contrast to the previous year’s loss of $163m. Lui Che Woo closed his reflections on the financial year with a note of gratitude. “I would like to thank all our team members who deliver ‘World-Class, Asian Heart’ service each and every day and contribute to the success of the group.”
