Galaxy Entertainment Group: A Comprehensive Overview

Galaxy Entertainment Group Limited (GEG) is a prominent public company engaged in the hotel and casino business. Headquartered in Macau, GEG owns and operates an extensive portfolio of resorts, shopping centers, restaurants, hotels, and gaming establishments. The company is listed on the Hong Kong Stock Exchange under the ticker symbol 27 and is a constituent stock of the Hang Seng Index.

Financial Highlights

As of December 31, 2023, GEG had 4,373,586,962 total shares outstanding. In FY23, the company paid a dividend of 0.20 HKD per share on October 27, 2023, and announced a dividend of 0.30 HKD per share, payable on April 26, 2024.

Revenue Trends 

• 2020: Revenue plummeted by 75.19%, reaching 12,876.099 million HKD, due to the COVID-19 pandemic.
• 2021: Revenue rebounded, increasing by 52.96% to 19,695.530 million HKD.
• 2022: Revenue decreased by 41.74% compared to 2021, totaling 11,473.793 million HKD.
• 2023: Revenue surged by 211.01% compared to 2022, reaching 35,684.253 million HKD.

Sales by Region in FY23 

• Macau: 93.19% of revenue, amounting to 33,254.050 million HKD.
• Hong Kong: 5.72% of revenue, totaling 2,042.548 million HKD.
• Mainland China: 1.09% of revenue, amounting to 387.655 million HKD.

As of December 31, 2023, total equity stood at 71,217.091 million HKD, a 10.47% increase from the previous year. Total current liabilities were 12,532.848 million HKD, significantly lower than total current assets of 19,207.252 million HKD.

Recent Developments

In 2023, Galaxy Entertainment Group inaugurated several key facilities, including the 450 all-suite Raffles at Galaxy Macau, the Horizon Club, the Galaxy International Convention Center (GICC), and Galaxy Arena. These additions underscore the company’s commitment to enhancing its offerings and maintaining a competitive edge in the hospitality and gaming sector.

Controversies

In 2017, GEG faced backlash after allegations surfaced that the company asked its staff to volunteer to clean a swimming pool at the company resort instead of participating in community street cleaning efforts. The following year, the company was accused of violating employee privacy rights by monitoring private social media activity for negative comments about the company, as reported by the South China Morning Post. Additionally, media reports suggested that GEG mishandled job application forms during a job fair, potentially violating the Personal Data Protection Act (Law No. 8/2005). Although no conclusive evidence of a breach was found, the Office for Personal Data Protection (GPDP) advised GEG to enhance its data protection measures.

Company Strategy

GEG aims to be globally recognized as Asia’s leading gaming and entertainment corporation. The company’s strategy is built on the following pillars:

• Local Market Insights: Leveraging Chinese heritage and understanding of Asian and Chinese customer preferences.
• Proven Expertise: Focusing on return on investment with a prudent capital expenditure plan, proven construction and hotel expertise, and controlled development.
• Well Positioned: Positioning GEG as a leading operator of integrated gaming, leisure, and entertainment facilities.
• Demand-Driven Strategy: Monitoring market developments and expanding prudently in a timely manner.

In summary, Galaxy Entertainment Group Limited continues to navigate the dynamic landscape of the hospitality and gaming industry with strategic expansions, financial prudence, and a commitment to maintaining its leadership position in the Asian market. Despite facing controversies, the company’s focus on growth and innovation remains steadfast.

Conclusion

In conclusion, Galaxy Entertainment Group Limited (GEG) has demonstrated resilience and strategic foresight in navigating the challenges and opportunities within the hospitality and gaming industry. With its robust portfolio of resorts, shopping centers, restaurants, hotels, and gaming establishments, GEG has firmly established itself as a key player in Macau and the broader Asian market. The company’s financial performance, marked by significant revenue rebounds and prudent dividend distributions, underscores its fiscal discipline and commitment to shareholder value.