On behalf of the Board, I am pleased to present the annual results of the Group for the year ended 31 December 2024.
Despite the challenging global economic and geopolitical environment, Macau has successfully capitalised on its rich heritage as a premier destination for gaming and entertainment. The city continues to take pride in its status as a globally renowned tourist hotspot, consistently earning recognition as a top-choice tourist destination for visitors worldwide. A series of high-profile international events hosted in Macau have further elevated its global standing, bolstering its reputation as a vibrant hub for entertainment and tourism. This growth was also supported by the expansion of the individual travel scheme, which facilitated increased visitation from Mainland China to Macau. According to the Macau government, total visitation reached approximately 34.9 million visitors in 2024, representing an increase of 23.8% when compared with that of 28.2 million in 2023. With a strategic shift towards the mass market segment, Macau’s total gross gaming revenue rose to MOP226.8 billion in 2024, representing an increase of 23.9% when compared with that of MOP183.1 billion in 2023. These figures demonstrate Macau’s resilience as a leading global destination for gaming and entertainment, despite broader economic headwinds. It should also be highlighted that gross gaming revenue contributed from LMG systems in Macau reached MOP4.3 billion in 2024, marking a 48.3% increase when compared with that of MOP2.9 billion in 2023. This growth also reveals the rising contribution of LMG systems to Macau’s total gross gaming revenue from 1.6% in 2023 to 1.9 % in 2024.
The Group’s reported revenue for the year ended 31 December 2024 amounted to HK$1,084.9 million, representing an increase of 71.0% over that of HK$634.3 million for the year ended 31 December 2023. This growth reflects our long-term strategic core initiatives to focus exclusively on the mass market, enabling us to capitalise on Macau’s robust gaming presence as visitation continues to strengthen. Notably, the Group’s Adjusted EBITDA for the year ended 31 December 2024 was HK$453.0 million, representing an increase of 239.1% over that of HK$133.6 million for the year ended 31 December 2023. This highlights our commitment to utilising top-notch technology to achieve operational efficiency and profitability. A significant contributor to our success has been the casino management services for Casino Kam Pek Paradise in Macau, which continue to provide a robust foundation for the Group. The Group’s reported revenue from these services increased by 27.2% from HK$564.8 million in 2023 to HK$718.3 million in 2024, following an increase in the popularity of the LMG terminals offered in and the number of patrons to the casino. This outstanding performance demonstrates our ability to adapt and thrive within a dynamic market, reinforcing our position as a key player in Macau’s vibrant gaming sector. On the other hand, the increasing demand for and popularity of the Group’s electronic gaming equipment and systems, particularly the LMG terminals and related products, from both the casino operators and the patrons has boosted the Group’s revenue from the sale/leasing of the electronic gaming equipment and systems business segment by 539.8% from HK$57.1 million in 2023 to HK$365.3 million in 2024.
Macau gaming industry remains a significant cornerstone of the local economy and a cultural hallmark in Macau. Notably, the 2022 gaming legislative reforms introduced a three-year transition period for “satellite casinos”, which operate under the licences of the Macau concessionaires but are managed by independent third parties. During this transition period from 1 January 2023 to 31 December 2025, satellite casinos can continue operations while adapting to comply with the updated regulations. Under the new gaming law, beyond 2025, satellite casinos will no longer share gaming revenue with the concessionaires but will instead receive a “management fee”. The Group is actively awaiting further details on the management fee provisions and will assess their impact on its operations. Nonetheless, satellite casinos, including Casino Kam Pek Paradise, have made significant contributions to the Macau’s economic development and job creation over the past decades. The Group has established a solid reputation as a casino management service provider with the utilisation of self-developed innovative technologies focusing on mass market in the gaming industry, as demonstrated by the outperformance of Casino Kam Pek Paradise compared with other satellite casinos. Subject to agreements with the existing concessionaire, the Group will engage discussions with both the concessionaire and the regulators to ensure the continuation of its casino management services for dedicated gaming patrons beyond 2025.
In light of rising operating costs and focus on efficiency, casino operators are increasingly investing in proprietary electronic gaming equipment and systems that provide a balance of operational efficiency and investment returns. Besides Macau, the Group continues to expand into rapidly growing gaming markets in Asia including the Philippines, Vietnam, Cambodia, and Sri Lanka, as well as North America, where the replacement cycle for ETG machines and slot machines presents significant opportunities. The opening of our Philippines office has strengthened our local marketing campaigns and technical support capabilities. The Group is also investing in new manufacturing facilities in Macau, which have commenced the production and assembly of gaming equipment in early 2025. These facilities will not only enhance the training of the local workforce in casino technology, but also ensure timely delivery to our valued customers. Meanwhile, our sales and after-sales service teams remain dedicated to meeting the unique needs of our customers by gathering detailed insights and delivering tailored solutions.
Looking ahead to 2025 and beyond, the Group’s strategic focus on innovation, market expansion, and operational efficiency positions the Group well to deliver exceptional value to its customers while adapting to the evolving demands of the gaming industry. With a robust supply chain, cutting-edge technology, and dedicated workforce, the Group is well-positioned to capitalise on emerging opportunities in both established and new markets, ensuring sustainable growth and fostering long-term partnerships.
Lastly, we would like to express our sincere appreciation to our Shareholders, customers, and business partners for their continued support. The achievements in 2024 are a testament to the hard work and unwavering dedication of all our staff members. We extend heartfelt thanks to all staff members and to everyone who has trusted and supported the Group over the years.
On behalf of the Board