In This Article:
-
Net Revenue: $11.3 billion in Q4 2024, up 9% year-on-year and 6% quarter-on-quarter.
-
Adjusted EBITDA: $3.2 billion in Q4 2024, up 15% year-on-year and 10% quarter-on-quarter.
-
Cash and Liquid Investments: $31.3 billion as of Q4 2024.
-
Dividends: Total of $0.80 per share paid in 2024; final dividend of $0.50 per share recommended.
-
CapEx Spend: $1.3 billion in Q4 2024, with $0.7 billion for Phase 3 and 4 development.
-
Group Total GGR Growth: 30% increase over 2023.
-
Mass GGR Growth: 11% year-on-year and 4% quarter-on-quarter in Q4 2024.
-
Galaxy Macau Mass Gain: Reached 143% of 2019 levels.
-
StarWorld Electronic Gaming Volume: Increased by 191% year-on-year in Q4 2024.
-
Workforce: Approximately 21,000 employees, similar to 2019 levels.
-
Staff Costs: Account for about 75% of fixed operating costs.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Macau's visitor arrivals increased by 24% in 2024, reaching 34.9 million, indicating a strong recovery in tourism.
-
Galaxy Entertainment Group Ltd (GXYEF) reported a 9% year-on-year increase in net revenue for Q4 2024, reaching $11.3 billion.
-
Adjusted EBITDA for Q4 2024 rose by 15% year-on-year, demonstrating effective cost control and strategic initiatives.
-
The company maintains a robust balance sheet with cash and liquid investments totaling $31.3 billion as of Q4 2024.
-
Galaxy Macau's mass gaming revenue reached 143% of 2019 levels, showcasing strong performance in the premium gaming segment.
Negative Points
-
Labor costs remain a significant expense, accounting for about 75% of fixed operating costs, posing a challenge for cost management.
-
Despite increased visitation, per capita spending has been lower, potentially impacting overall revenue growth.
-
The competitive environment in Macau remains intense, requiring strategic focus to maintain market share.
-
The company's CapEx spending was substantial, with $1.3 billion spent in Q4 2024, which could impact short-term financial flexibility.
-
Concerns about potential cannibalization of the Macau gaming market due to international expansion, particularly in Thailand.
Q & A Highlights
Q: Can management share insights on Galaxy Entertainment's approach to the gaming license in Thailand and potential impacts on the Macau market? A: Ted Chan, Chief Financial Officer, explained that Galaxy Entertainment is closely monitoring the developments in Thailand, with the government finalizing gaming laws. The company has opened an office in Bangkok and is serious about the opportunity, seeing Thailand as a significant market. Regarding capital allocation, the company has increased its dividend payout ratio to 50% and is generating additional free cash flow, which will be carefully managed for future opportunities and shareholder returns.