Galaxy Entertainment Group has once again reiterated confidence in the future performance of Macau despite encountering a series of struggles through the past year.
Echoing sentiments issued throughout the entirety of the past year, Dr Lui Che Woo, Chair of the operator, made the comments as part of a market overview that accompanied the publication of the group’s latest financial statement.
“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 explained.
“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.
“We are pleased with the reopening of borders in early 2023. Macau has experienced solid demand and associated revenue and we were particularly encouraged by the performance over the Chinese new year golden week. We are hopeful for a sustainable recovery and remain cautiously optimistic.”
“We are confident in the future outlook for Macau and we look forward to working with all the stakeholders over the next 10 years”
Due to the challenges encountered in the autonomous region, a 39 per cent fourth quarter revenue downfall to HK$2.91bn (2021: HK$4.72bn), with gaming occupying HK$1.59bn (2021: HK$3.25bn) and non-gaming comprising HK$529m (2021: HK$666m).
This was also reflected in the group’s full-year performance as a 42 per cent downfall was tracked to HK$11.47bn (2021: $19.69m). Gaming and non-gaming comprised HK$6.56bn (2021: HK$14bn) and HK$2.02bn (2021: HK$2.06bn), respectively.
On a full-year basis, Galaxy Macau saw revenue drop 44 per cent to HK$7.4bn (£783.17m), with StarWorld Macau down 68 per cent to HK$1bn (£105.83m) and Broadway Macau closing at HK$60m (£6.34m), up five percentage points year-on-year.
Furthermore, a HK$200,000 (2021: HK$1bn) adjusted EBITDA loss compounded the group’s FY performance to an overall loss of HK$600,000 (2021: HK$3.5bn).
According to Macau’s Gaming Inspection and Coordination Bureau, revenue across the region declined 46 per cent to HK$10.1bn (£1.06bn) during Q4, with FY down 51 per cent to HK$41bn (£4.33bn).
In 2022, visitor arrivals were 5.7 million, a drop of 26 per cent YoY, with overnight visitor numbers decreased 33 per cent.
The quarter also saw Galaxy gain a fresh ten-year gaming concession from the Macau government, which has been accompanied by a significant investment pledge.
This will see the company make an MOP28.4bn (£2.92bn) outlay to enhance the facilities and services of its integrated resorts, 96 per cent of which will be utilised for non-gaming projects and to explore overseas customer markets.
“We are hopeful for a sustainable recovery and remain cautiously optimistic”
“We are confident in the future outlook for Macau and we look forward to working with all the stakeholders over the next 10 years and supporting the growth of Macau with a particular focus on non-gaming,” the company noted.
Regarding the company’s ongoing construction project, the Galaxy CEO explained: “We are pleased to confirm that Cotai phase three is effectively completed and we continue with the development of phase four.
“We are scheduled to progressively open phase three Galaxy International Convention Center, Galaxy Arena and Raffles at Galaxy Macau in Q2 2023, with our first MICE event being held in April 2023.
“This will be followed by world-class concerts K-Pop TREASURE and the highly popular BLACKPINK’s world tour to be held in our state-of-the-art Galaxy Arena. We will continue to monitor market conditions and when appropriate we will open Andaz Macau.
“GEG is committed to invest in Macau’s economic diversification and support the Macau government’s vision of becoming a world centre of tourism and leisure by hosting a variety of world class shows and performances.
“We will bring known proven events into Macau to support the government’s non-gaming drive. Additionally, we will introduce new and innovative events to further diversify Macau’s economy and attract international tourists.”
