Galaxy Entertainment Group (GEG) has resumed the payment of dividends after reporting a 107% quarter-on-quarter increase in Adjusted EBITDA to HK$1 billion (US$128 million) in the three months to 31 December 2021 and reversing a FY20 EBITDA loss.
The company’s 4Q21 Adjusted EBITDA result was 3% higher than the same quarter in 2020, while Adjusted EBITDA of HK$3.5 billion (US$449 million) for the full year compared with an EBITDA loss of HK$1 billion (US$128 million) recorded 12 months earlier. Net profit attributable to shareholders was HK$1.3 billion (US$167 million), aided by cost-cutting initiatives.
The significantly improved results saw GEG declare a special dividend of HK$0.30 per share to be paid on 29 April 2022, having failed to declare a dividend for 2020. This, it said, “attests to our confidence in Macau, our financial strength and our future earnings potential.”
Announcing its financial results on Wednesday, Galaxy noted that group-wide net revenue for the December quarter had decreased 7% year-on-year but increased 11% quarter-on-quarter to HK$4.8 billion (US$615 million) in 4Q21. The result included GGR on a management basis of HK$3.9 billion (US$500 million), down 16% year-on-year and up 6% quarter-on-quarter. Mass GGR of HK$3.0 billion (US$384 million) was 7% higher year-on-year and 32% higher quarter-on-quarter, while VIP GGR fell 57% year-on-year and 42% quarter-on-quarter to HK$713 million (US$91 million). GGR from slots and ETGs was HK$159 million (US$20 million), down 10% year-on-year and up 6% quarter-on-quarter.
For FY21, GEG posted net revenue of HK$19.7 billion (US$2.5 billion), up 53% year-on-year, with GGR rising 51% to HK$17.3 billion (US$2.2 billion). This included an 83% increase in mass GGR to HK$11.2 billion (US$1.4 billion), 11% increase in VIP GGR to HK$5.5 billion (US$705 million) and 35% increase in electronic GGR to HK$642 million (US$82 million).
Flagship property Galaxy Macau recorded net revenue of HK$13.3 billion (US$1.7 billion) in FY21, with Adjusted EBITDA of HK$2.9 billion (US$372 million) reversing a loss of HK$900 million (US$115 million) in 2020. For the December quarter, net revenue was HK$3.2 billion (US$410 million) and Adjusted EBITDA HK$763 million (US$98 million).
At StarWorld, FY21 net revenue was HK$3.3 billion (US$423 million) with Adjusted EBITDA of HK$374 million (US$48 million), including 4Q21 revenue of HK$669 million (US$86 million) and Adjusted EBITDA of HK$44 million (US$6 million).
Broadway Macau was more subdued, with net revenue falling 39% year-on-year to HK$57 million (US$7 million) in 2021, although Adjusted EBITDA loss narrowed from HK$162 million (US$21 million) to HK$84 million (US$11 million). Net revenue for the December quarter was HK$14 million (US$1.8 million) with an Adjusted EBITDA loss of HK$22 million (US$3 million).