Galaxy to report a 5% EBITDA rise in last quarter: Jefferies
Jefferies estimates that Galaxy Entertainment Group (GEG) is set to report adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of HK$3 billion ($385.3 million). The projected estimate reflects a 5 percent increase quarter-over-quarter and a 10 percent rise year-over-year.
Brokerage anticipates that Galaxy’s sales will rise by 12 percent from the previous quarter, driven by robust demand in the gaming and entertainment sectors.
Galaxy’s gross gaming revenue (GGR) is expected to reach HK$10.9 billion. The gross gaming revenue for the quarter is expected to mark a 7 percent increase from the third quarter and surpass the broader industry growth rate of 3 percent.
The increase in GGR comes on the back of various events and quarters scheduled for the quarter, featuring notable performances from artists like Andy Lau, Dao Lang, and (G)I-DLE.
Other contributions to the anticipated growth include the continued ramp-up of Phase 3 at Galaxy Macau, and enhancements at StarWorlds level 3home to the largest Live Table Games terminals in Macau.
The 바카라 operator is set to release its results in February. Investors are looking forward to see if Galaxy will be making strides in the premium mass segment. This is a point of discussion especially with the impending launch of the Capella hotel, which will be offering about 100 luxury suites in mid-2025.
Moreover, Jefferies has adjusted its forecast to lower the 2024 net profit estimate by 2.4 percent. However, the projections for 2025 and 2026 were maintained.
Salary hikes and smart gaming tables rollout
Recently, Galaxy Entertainment Group announced that it will hike salaries for all eligible employees at the senior manager grade and below, effective from April 1.
About 98 percent of Galaxys staff is set to benefit from the hike. Qualified staff who joined the company before January this year will receive a salary hike according to the programme.
The staff members who have a monthly base salary and guaranteed tips (if applicable) of MOP16,000 or below will receive an increment of MOP600. Meanwhile, qualifying recipients with a monthly base salary above MOP16,000 will receive a 2.5 percent salary increase.
Galaxy recently became the second operator in Macau after MGM China to complete the full deployment of smart gaming tables across its entire mass baccarat inventory, according to analysts at Citigroup.
This development was part of a broader trend in the region, where Macaus concessionaires are adopting smart table technology over the past year following MGMs success to enhance the gaming experience and boost efficiency.
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