Macau-based casino operator Galaxy Entertainment Group (GEG) has posted an increase in net revenue for the first quarter of 2025. GEG reported net revenue of HK$11.2 billion (US$1.4 billion), marking a 6 percent year-on-year increase.
Galaxy Macau remains top performer
For the quarter, adjusted earnings of interest, taxes, depreciation and amortisation (EBITDA) surged by 16 percent year-on-year to HK$3.3 billion. The figure represents a 2 percent increase sequentially. The crown jewel in GEG’s portfolio, Galaxy Macau, remained the top contributor, generating HK$9.1 billion in revenue and HK$3.0 billion in adjusted EBITDA.
In a statement, chairman Francis Lui said that GEG continued to “drive every segment of the business, in particular, the premium mass through our unparalleled products and service, ongoing property enhancements, diverse entertainment shows and events, as well as the full implementation of smart tables, among others.” Lui noted that during and after the Chinese New Year period, the casinos’ performance was particularly strong.
Successful entertainment boosts performance
While Galaxy Macau soared, StarWorld Macau experienced a modest decline. The property posted HK$1.2 billion in revenue, down 9 percent from the corresponding year. StarWorld Macau registered HK$350 million in EBITDA, reflecting a 20 percent year-on-year dip. Despite revenue softness, StarWorld achieved full occupancy. Meanwhile, hotel occupancy across Galaxy Macau’s seven hotels stood at 99 percent.
The company’s performance was boosted by successful entertainment and MICE events hosted at Galaxy Arena and the Galaxy International Convention Center. These events resulted in Galaxy Macau witnessing a 64 percent year-on-year increase in foot traffic.
The group also continues to progress on its next landmark project, Cotai Phase 4, spanning 600,000 square meters. It is slated for completion by 2027. GEG announced a final dividend of HK$0.50 per share, which is payable in June 2025. In a separate announcement, the group announced the appointment of Eileen Lui Wai Ling as an executive director, effective from 9 May. She will also be appointed as a member of the executive board of GEG on the same day.
Analysts’ prediction for GEG
The strong results come despite analysts warning that GEG might post a minor decline in the first quarter of 2025 as the region’s gaming and tourism sector faces minor headwinds. According to an analysis released by Jefferies, Galaxy’s gross gaming revenue (GGR) was likely to stay at HK$10.9 billion, marking a one percent drop from the previous quarter. The decline comes amid ongoing challenges in Macau’s post-pandemic recovery, particularly in attracting visitors and maintaining steady daily earnings.
Last year, Galaxy reported an increase in profit of 28.3 percent year-on-year to HKD8.76 billion. The company also announced a final dividend of HKD0.50 per share. The casino operator posted gross revenue for 2024 amounted to HKD43.43 billion, an increase of 21.7 percent year-on-year. The group’s net gaming revenue was HKD33.83 billion, up from HKD27.29 billion in 2023. Non-gaming revenue also climbed by 19.1 percent year-on-year to HKD6.43 billion.
In January, GEG predicted that Macau’s Gross Gaming Revenue (GGR) would outpace China’s GDP growth in 2025, anticipating an optimistic outlook echoed by the government. The forecast followed a meeting between Galaxy Entertainment’s management and investment bank Goldman Sachs. According to Macau’s fiscal year 2025 budget, GGR is expected to rise by 6 percent year-on-year, reaching MOP 240 billion.
