Galaxy Entertainment Group Limited · HKEX:27
Galaxy Entertainment — Q2 2023 Earnings Presentation
30 slides from Galaxy Entertainment's earnings presentation, Aug 17, 2023
Slide 1: Q2 & Interim Results 2023
Q2 & Interim Results 2023 17 August, 2023
Slide 2: Dr. Lui Che Woo, Chairman of GEG said
Dr. Lui Che Woo, Chairman of GEG said: “I would like to take this opportunity to update you on GEG’s most recent activities and financial results for the second quarter and half year of 2023. During the period Macau continued its business recovery and the Group’s primary focus was on operational exe
Slide 3: Executive Summary: GEG Well Positioned for Future Growth
Executive Summary GEG: Well Positioned for Future Growth Q2 2023 • Q2 Group Net Revenue of $8.7 billion, up 257% year-on-year and up 23% quarter-on-quarter • Q2 Group Adjusted EBITDA of $2.5 billion, versus $(384) million in Q2 2022 and $1.9 billion in Q1 2023 • Normalized Q2 Adjusted EBITDA was $2.
Slide 4: Executive Summary: Galaxy Macau
Executive Summary Galaxy Macau™: Well Positioned for Future Growth Q2 2023 • Q2 Net Revenue of $6.6 billion, up 356% year-on-year and up 22% quarter-on-quarter • Q2 Adjusted EBITDA of $2.2 billion, versus $(188) million in Q2 2022 and $1.85 billion in Q1 2023 • Normalized Q2 Adjusted EBITDA was $2.2
Slide 5: Executive Summary: StarWorld Macau
Executive Summary StarWorld Macau: Well Positioned for Future Growth Q2 2023 • Q2 Net Revenue of $1.2 billion, up 456% year-on-year and up 30% quarter-on-quarter • Q2 Adjusted EBITDA of $362 million, versus $(158) million in Q2 2022 and $216 million in Q1 2023 • Hotel occupancy for Q2 was 100% 1H 20
Slide 6: Executive Summary: Broadway Macau, City Clubs and CMD
Executive Summary Broadway Macau™, City Clubs and Construction Materials Division (“CMD”) • Broadway Macau™: Q2 Adjusted EBITDA was $(10) million, versus $(19) million in Q2 2022 and $(10) million in Q1 2023 • City Clubs: Q2 Adjusted EBITDA was $4 million, versus $11 million in Q2 2022 and $3 millio
Slide 7: Executive Summary: Balance Sheet and GEG Dividend
Executive Summary Balance Sheet: Healthy and Liquid Balance Sheet • As at 30 June 2023, cash and liquid investments were $24.4 billion and net cash was $22.0 billion GEG Dividend • Today the Group announced a special dividend of $0.20 per share payable on or about 27 October 2023 August 2023 7
Slide 8: Executive Summary: Development Update
Executive Summary Development Update: Soft opened Phase 3 including GICC, Galaxy Arena and Raffles at Galaxy Macau; Expect to open Andaz Macau soon; Progressing with Phase 4 • Cotai Phase 3 – Soft opened GICC, Galaxy Arena and Raffles at Galaxy Macau, to open Andaz Macau in September • Cotai Phase 4
Slide 9: Interim Results 2023
Interim Results 2023 August 2023 9
Slide 10: GEG Revenue Summary 1H 2023
GEG Revenue Summary 1H 2023 Group Net Revenue in the first half of 2023 was up 141% YoY to $15.7 billion GEG Gross Revenue (HK$’m) GEG Net Revenue (HK$’m) $17,531 $15,715 $13,432 $11,898 $6,994 $6,524 $5,258 $4,950 $4,940 BW, $4,512 BW, $3,179 BW, BW, BW, $31 BW, $41 $2,906 $41 $29 $2,443 $31 $29 $2
Slide 11: GEG Revenue Summary 1H 2023
GEG Revenue Summary 1H 2023 Group Net Revenue in the first half of 2023 was up 141% YoY to $15.7 billion Gross Net Gross Net YoY Revenue Revenue HoH Revenue Revenue GEG Total +151% +141% GEG Total +233% +217% Galaxy Macau™ +172% +164% Galaxy Macau™ +323% +309% StarWorld +256% +236% StarWorld +456% +
Slide 12: GEG Adjusted EBITDA Summary 1H 2023
GEG Adjusted EBITDA Summary 1H 2023 Group Adjusted EBITDA was $4.4 billion in the first half of 2023, up 2193% YoY • Normalized 2023 1H Adjusted EBITDA was $4.3 billion after adjusting for good luck of $63 million, up 2532% YoY GEG Adjusted EBITDA (HK$’m) YoY HoH $4,380 GEG Total +2193% +689% $4,018
Slide 13: GEG 1H 2023 NPAS
GEG 1H 2023 NPAS 1H 2023 Net Profit Attributable to Shareholders of $2.9 billion, including $398 million of non-recurring items, Vs loss of $850 million in 1H 2022 (in HK$'m) 1H22 1H23 YoY Net Revenue $ 6,524 $ 15,715 141% Adjusted EBITDA $ 191 $ 4,380 2193% Net Profit / (Loss) attributable to share
Slide 14: Q2 2023 Results
Q2 2023 Results August 2023 14
Slide 15: GEG Revenue Q2 2023
GEG Revenue Q2 2023 Q2 Group Net Revenue of $8.7 billion, up 257% YoY and up 23% QoQ GEG Net Revenue (HK$’m) 2022 Q2 2023 Q1 2023 Q2 YoY QoQ $8,661 GEG Total +257% +23% $7,054 Galaxy Macau™ +356% +22% $6,550 StarWorld Macau +456% +30% $5,348 $2,424 BW, BW, Broadway Macau™ +53% +28% BW, $18 $23 $1,43
Slide 16: GEG Adjusted EBITDA Q2 2023
GEG Adjusted EBITDA Q2 2023 Q2 Group Adjusted EBITDA of $2.5 billion, Vs $(384) million in Q2 2022 and $1.9 billion in Q1 2023 • Normalized Q2 Adjusted EBITDA of $2.5 billion, after adjusting for good luck of approximately $4 million, versus $(408) million in Q2 2022 and $1.8 billion in Q1 2023 GEG
Slide 17: Galaxy Macau
TA Galaxy Galaxy Macau™ - HUE GEG August 2023 17
Slide 18: Galaxy Macau Q2 2023
Galaxy Macau Q2 2023 Galaxy Macau™ Q2 Adjusted EBITDA of $2.2 billion, Vs $(188) million in Q2 2022 and $1.8 billion in Q1 2023 Galaxy Macau YoY QoQ Net Revenue of $6.6 billion, up 356% YoY and 22% QoQ Total Gross Revenue +384% +25% • VIP win of $0.9 billion, up 508% YoY and 17% QoQ Total Net Reve
Slide 19: StarWorld Macau
StarWorld Macau August 2023 19
Slide 20: StarWorld Macau Q2 2023
StarWorld Macau Q2 2023 StarWorld Macau Q2 Adjusted EBITDA of $362 million, versus $(158) million in Q2 2022 and $216 million in Q1 2023 StarWorld Macau YoY QoQ Net Revenue of $1.2 billion, up 456% YoY and 30% QoQ Total Gross Revenue +490% +29% • Mass win of $1.2 billion, up 497% YoY and 30% QoQ Tot
Slide 21: Broadway Macau and City Clubs Q2 2023
Broadway Macau™ and City Clubs Q2 2023 Broadway Macau™ Q2 Adjusted City Clubs Q2 Adjusted EBITDA EBITDA of $(10) million Vs $(19) was $4 million, Vs $11 million in Q2 million in Q2 2022 and $(10) million 2022 and $3 million in Q1 2023 in Q1 2023 • Net Revenue of $56 million, up 300% YoY and • Net Re
Slide 22: Construction Materials Q2 2023
Construction Materials Q2 2023 Construction Materials Q2 Adjusted EBITDA increased 34% YoY and 126% QoQ to $228 million Concrete Plant at New Urban Zone A, Macau Adjusted EBITDA (HK$’m) $228 $170 $101 2022 Q2 2023 Q1 2023 Q2 August 2023 22
Slide 23: Cash and Debt Update
Cash and Debt Update Balance Sheet: Healthy and Liquid Balance Sheet • As at 30 June 2023, cash and liquid investments were $24.4 billion and net cash was $22.0 billion • The Group announced a special dividend of $0.20 per share payable on or about 27 October 2023 Cash & Liquid Investments and Net C
Slide 24: Selected Major Awards in 1H 2023
Selected Major Awards in 1H 2023 Award Presenter Best Gaming Operator Asia Gaming Awards 2023 GEG Sustainability Award International Gaming Awards 2023 Outstanding Corporate Social Responsibility Award Mirror Post of Hong Kong Michelin One-Star Restaurant - 8½ Otto e Mezzo BOMBANA The MICHELIN Guide
Slide 25: 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 with a particular focus on adding new and innovative F&B and retail offerings Cotai - The Next Chapter • W
Slide 26: GEG Development Update
GEG Development Update Korean K-Pop BLACKPINK World Tour in Galaxy Arena in May 2023 16,000-seat Galaxy Arena Pillarless Convention Hall in GICC capable of seating 7,000 people theater style or 2,500 banquet style August 2023 26
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. Phase 4 will include 6 high-end hotel brands new to Macau, together with a 4000-seat theater, extensive F&B, retail, non- gaming amenities, landscap
Slide 28: Summary: Positioned for Growth
Summary Positioned for Growth Corporate – Well Positioned for Future Growth • 1H Group Adjusted EBITDA of $4.4 billion Vs $191 million in 1H 2022 • Q2 Group Adjusted EBITDA of $2.5 billion, Vs $(384) million in Q2 2022 and $1.9 billion in Q1 2023 • The Group announced a special dividend of $0.20 per
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: Q2 & Interim Results 2023
Q2 & Interim Results 2023 17 August, 2023
Galaxy Entertainment Group — Q2 2023 Earnings Presentation on 6ix