Q2 2024 Galaxy Entertainment Group Ltd Earnings Call Transcript
Key Points
- Galaxy Entertainment Group Ltd (GXYEF) reported a net revenue of $10.9 billion for Q2 2024, up 26% year on year and 3% quarter on quarter.
- Adjusted EBITDA for Q2 2024 was $3.2 billion, up 28% year on year and 12% quarter on quarter.
- The company announced an interim dividend of $0.5 per share, reflecting strong confidence in the Macau market and future performance.
- Galaxy Macau's mass business performed exceptionally well, achieving 137% of 2019 levels.
- The company is progressing smoothly with Phase 4 development, focusing on non-gaming, entertainment, and family facilities, with completion expected in 2027.
- The company experienced a slight decrease in adjusted EBITDA by $20 million due to unfavorable luck in Q2.
- Staff costs represent around 75% of the company's operating expenses, indicating high labor costs.
- Total CapEx for Q2 was HKD1.1 billion, with significant investments in Phase 3 and 4 developments, which could strain financial resources.
- The market competition remains intense, particularly in the premium mass segment, which could impact margins.
- The company is still in the early stages of implementing smart table technology, with full coverage expected by year-end, indicating ongoing operational adjustments.
Thank you for holding, and welcome to Galaxy Entertainment Group's Management Update for the Q2 and Interim Results of 2024.
Joining us today are Mr. Ted Chan, Chief Financial Officer; Mr. Roland To, Senior Director of Strategic Planning; and Mr. Peter Caveny, Assistant Senior Vice President of Investor Relations. (Operator Instructions)
I would now like to pass over to Mr. Chan for a presentation. Mr. Chan, please go ahead. Thank you.
Thank you, operator. Hello, everyone, and thank you for joining us for the update call on GEG's Q2 and first half 2024 results. Today I'm joined by Peter Caveny and Roland To. Copies of our media release, stock exchange announcement and PowerPoint presentation are available on our website, which also includes our customary disclaimers.
During Q2 2024 for central governments continue to support Macau's development by expanding the IVS to 59 cities with a total population of approximately 500 million people.
Moreover,
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