Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — FY2022 Earnings Presentation
30 slides from Galaxy Entertainment's earnings presentation, Feb 23, 2023
Slide 1: Q4 and Annual Results 2022
Q4 and Annual Results 2022 23 February, 2023
Slide 2: Letter from the Chairman of GEG
Letter from the Chairman of GEG I would like to take this opportunity to provide you with a broad market overview and to review the financial performance of GEG in 2022. Macau like the rest of the world continued to experience the impact of COVID-19 throughout 2022, with sporadic outbreaks in Mainla
Slide 3: Executive Summary: GEG
Executive Summary GEG: Well Positioned for Future Growth Q4 2022 • Q4 Group Net Revenue of $2.9 billion, down 39% year-on-year and up 43% quarter-on-quarter • Q4 Group Adjusted EBITDA of $(0.2) billion, versus $1.0 billion in Q4 2021 and $(0.6) billion in Q3 2022 • Played unlucky which decreased Adj
Slide 4: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Well Positioned for Future Growth Q4 2022 • Q4 Net Revenue of $1.8 billion, down 43% year-on-year and up 71% quarter-on-quarter • Q4 Adjusted EBITDA of $58 million, versus $763 million in Q4 2021 and $(299) million in Q3 2022 • Played unlucky in Q4 which decreased Ad
Slide 5: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Well Positioned for Future Growth Q4 2022 • Q4 Net Revenue of $0.2 billion, down 63% year-on-year and up 56% quarter-on-quarter • Q4 Adjusted EBITDA of $(142) million, versus $44 million in Q4 2021 and $(169) million in Q3 2022 • There was no luck impact on Q4 Adju
Slide 6: Executive Summary: Broadway Macau, City Clubs and Construction Materials
Executive Summary Broadway Macau™, City Clubs and Construction Materials Division • Broadway Macau™: Full Year Adjusted EBITDA of $(62) million, versus $(84) million in 2021. In Q4 2022 Adjusted EBITDA was $(10) million, versus $(22) million in Q4 2021 and $(16) million in Q3 2022 • City Clubs: Full
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2022, cash and liquid investments were $26.4 billion and net cash was $18.9 billion • As at 31 December 2022, debt of $7.5 billion primarily reflects ongoing treasury yield management initiatives with minimal core
Slide 8: Executive Summary: Development Update
Executive Summary Development Update: Progressively Opening Phase 3 in Q2 2023 and Continue Making Progress on Phase 4 • Cotai Phase 3 – Scheduled to progressively open GICC, Galaxy Arena and Raffles at Galaxy Macau in Q2 2023 • Cotai Phase 4 - Our efforts are firmly focused on the development of Ph
Slide 9: 2022 Annual Results
2022 Annual Results February 2023 9
Slide 10: GEG Revenue Summary FY2022
GEG Revenue Summary FY2022 Fiscal 2022 Net Revenue decreased 42% YoY to $11.5 billion Full Year GEG Net Revenue (HK$’m) 2021 2022 $19,695 Net Revenue YoY GEG Total (42)% GM, $13,276 Galaxy Macau™ (44)% $11,474 StarWorld Macau (68)% BW, $57 GM, $7,418 BW, Broadway Macau™ +5% $60 CC, SW, $3,278 $62 CC
Slide 11: GEG Adjusted EBITDA FY2022
GEG Adjusted EBITDA FY2022 Full Year Group Adjusted EBITDA of $(553) million versus $3.5 billion in 2021 Full Year GEG Adjusted EBITDA (HK$’m) 2021 2022 Adjusted EBITDA YoY $3,537 GEG Total (116)% GM, $2,905 Galaxy Macau™ (90)% SW,$374 $(553) StarWorld Macau (241)% CC, CMD,$976 $62 GM, $295 Reversal
Slide 12: GEG FY2022 NPAS
GEG FY2022 NPAS FY2022 Net Profit Attributable to Shareholders of $(3.4) billion, including $1.1 billion of non-recurring items in 2022, Vs $1.3 billion in FY2021 (in HK$'m) FY2021 FY2022 YoY% Net Revenue $ 19,695 $ 11,474 -42% Adjusted EBITDA $ 3,537 $ (553) -116% Net Profit / (Loss) attributable t
Slide 13: Cash and Debt Update
Cash and Debt Update Balance Sheet: Healthy and Liquid Balance Sheet • As at 31 December 2022, cash and liquid investments were $26.4 billion and net cash was $18.9 billion • As at 31 December 2022, debt of $7.5 billion primarily reflects ongoing treasury yield management initiatives with minimal co
Slide 14: Q4 2022 Results
Q4 2022 Results February 2023 14
Slide 15: GEG Revenue Q4 2022
GEG Revenue Q4 2022 Q4 Group Net Revenue of $2.9 billion, down 39% YoY and up 43% QoQ GEG Net Revenue (HK$’m) 2021 Q4 2022 Q3 2022 Q4 YoY QoQ $4,752 GEG Total (39)% +43% Galaxy Macau™ (43)% +71% GM, $3,214 $2,916 StarWorld Macau (63)% +56% $2,034 BW, BW, GM, $1,834 $14 BW, $19 $10 GM, $1,072 Broadwa
Slide 16: GEG Adjusted EBITDA Q4 2022
GEG Adjusted EBITDA Q4 2022 Q4 Group Adjusted EBITDA of $(163) million, Vs $1.0 billion in Q4 2021 and $(581) million in Q3 2022 • Normalized Q4 Adjusted EBITDA of $(123) million, after adjusting for bad luck of approximately $40 million, versus $0.9 billion in Q4 2021 and $(561) million in Q3 2022
Slide 17: Galaxy Macau
Galaxy Macau February 2023 17
Slide 18: Galaxy Macau Q4 2022
Galaxy Macau Q4 2022 Galaxy Macau™ Q4 Adjusted EBITDA of $58 million, Vs $763 million in Q4 2021 and $(299) million in Q3 2022 Galaxy Macau YoY QoQ Net Revenue of $1.8 billion, down 43% YoY and up 71% QoQ Total Gross Revenue (44)% +75% • VIP win of $148 million, down 73% YoY and up 164% QoQ Total
Slide 19: StarWorld Macau
StarWorld Macau February 2023 19
Slide 20: StarWorld Macau Q4 2022
StarWorld Macau Q4 2022 StarWorld Macau Q4 Adjusted EBITDA of $(142) million, versus $44 million in Q4 2021 and $(169) million in Q3 2022 StarWorld Macau YoY QoQ Net Revenue of $246 million, down 63% YoY and up 56% QoQ Total Gross Revenue (66)% +60% • Mass win of $229 million, down 59% YoY and up 59
Slide 21: Broadway Macau
Broadway Macau™ February 2023 21
Slide 22: Broadway Macau Q4 2022
Broadway Macau™ Q4 2022 Broadway Macau™ Q4 Adjusted EBITDA of $(10) million Vs $(22) million in Q4 2021 and $(16) million in Q3 2022 Net Revenue of $19 million, up 36% YoY and 90% QoQ Broadway Macau™ YoY QoQ • Hotel occupancy of available rooms for Q4 was 37% Total Gross Revenue +36% +90% Total Net
Slide 23: City Clubs Q4 2022
City Clubs Q4 2022 City Clubs Q4 Adjusted EBITDA was $(14) million, Vs $25 million in Q4 2021 and $(26) million in Q3 2022 • Effective in June 2022, we ceased operations at Rio Casino and President Casino with the aim to optimize the Company’s operational scale Adjusted EBITDA (HK$’m) $25 -$14 -$26
Slide 24: Construction Materials Q4 2022
Construction Materials Q4 2022 Construction Materials Q4 Adjusted EBITDA decreased 45% YoY and up 37% QoQ to $160 million Puer Cement Plant Adjusted EBITDA (HK$’m) $293 $160 $117 2021 Q4 2022 Q3 2022 Q4 February 2023 24
Slide 25: Selected Major Awards in 2022
Selected Major Awards in 2022 Award Presenter Top 20 Companies of the 7th Hong Kong Business Sustainability Index Centre for Business Sustainability, The Chinese University of Hong Kong Top 20 Companies of the 3rd Greater Bay Area Business Sustainability Index Volunteer Award of Outstanding Enterpri
Slide 26: GEG Development Update
GEG Development Update Galaxy Macau™ and StarWorld Macau • We continue to make ongoing progressive enhancements to our resorts to ensure that they remain competitive and appealing to our guests Cotai - The Next Chapter • We are pleased to confirm that Cotai Phase 3 is effectively completed and we co
Slide 27: GEG Development Update
GEG Development Update Cotai - The Next Chapter (continued) • We are now firmly focused on the development of Phase 4, which is already well under way. We see the premium market evolving with this segment preferring higher quality and more spacious rooms. We continue to proceed with the construction
Slide 28: Summary Positioned for Growth
Summary Positioned for Growth Corporate – Well Positioned for Future Growth • FY2022 Net Revenue of $11.5 billion, down 42% YoY and Adjusted EBITDA of $(553) million, versus $3.5 billion in 2021 • Q4 2022 Adjusted EBITDA of $(163) million, versus $1.0 billion in Q4 2021 and $(581) million in Q3 2022
Slide 29: Disclaimer
Disclaimer This document and any verbal presentation or discussion have been prepared by Galaxy Entertainment Group Limited (the “Company”) solely for your personal reference. The information provided has not been independently verified. No representation or warranty express or implied is made as to
Slide 30: Q4 and Annual Results 2022
Q4 and Annual Results 2022 23 February, 2023
Galaxy Entertainment Group — FY2022 Earnings Presentation on 6ix