MACAU BUSINESS Asked about the revenue stream trends, Francis Lui
expressed satisfaction. “We are doing quite well,” he said, adding that the group is “pretty happy” as the latest figures indicate that mass market revenue exceeded comparable levels in 2019. “We will continue to expand in mass gaming,” emphasised the Vice Chairman of GEG. Sitting next to him in this joint interview, Galaxy’s Chief Operating Officer (COO) Kevin Kelley noted that “with regards to gaming GGR, the competition is quite fierce, and we are up for the challenge,” adding that the company pays “close attention to all segments of the business.”
Mass market supremacy While non-gaming takes center stage, the lion’s share of the revenue comes from gaming, the ‘head of the dragon’ that leads the other sectors. In terms of gross gaming revenue (GGR) market share, Galaxy has consistently ranked second among the city’s six operators over the past years, trailing only behind Sands. This standing also applies to adjusted property earnings before interest, taxes, depreciation, and amortisation (EBITDA), as shown in the latest quarterly results of the operators.
In the post-pandemic era and under the SAR’s new gaming regulations and concessions, the GGR structure has shifted significantly compared to before the pandemic, with the VIP segment shrinking and the mass market expanding. In the case of Galaxy operations, the results for last year’s third quarter show that the mass market segment surpassed pre-pandemic levels of the third quarter of 2019, while VIP-generated revenue only accounted for 12 per cent of what was recorded in 2019, according to data compiled by consultancy 2nt8 Limited.
Lifting non-gaming How much and how fast can non-gaming revenue grow? That is an important question when gauging diversification, starting with gaming and integrated resorts themselves. “We need to ensure that the non-gaming part is also progressing at the same rate,” Francis Lui stresses. Non-gaming net revenue has been claiming a larger share after the pandemic. For instance, non-gaming’s share increased from just 13 percent of gaming net revenue in the third quarter of 2019 to 20 percent in the July-to-September period of 2023, as per Galaxy company results. The results show that non-gaming net revenue for the third quarter of 2019 has already surpassed that of the comparable period in 2019. Francis Lui mentions that the further expansion of non-gaming revenue is a challenge that Galaxy “is focusing on.” His confidence stems from the perspective that “when people come to Macau, in addition to gambling, they can enjoy shopping, entertainment, sports events, and more.” Visitor patterns, behaviour, and expectations are
evolving. “It is now evident that tourists visiting Macau have many other needs besides gaming,” Lui Che Woo adds, pointing the way forward: “Only by discarding old thinking can society progress.”
22 FEBRUARY 2024
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