Galaxy Entertainment Q3 revenue rises 4% on higher VIP gaming

The Macau operator’s latest results showed contrasting performances across its casino properties, alongside continued investment in its Cotai development.

Key takeaways

• Galaxy Entertainment’s Q3 net revenue increased 4 per cent  year-on-year to HK$12.692bn.Total GGR rose 5 per cent  to HK$12.875bn, supported by a 41 per cent  increase in VIP gaming revenue.
• Mass-market GGR declined 3 per cent , while electronic gaming revenue grew 8 per cent .
• Normalised adjusted EBITDA fell 7 per cent  to HK$3.104bn after excluding favourable gaming outcomes.
• Galaxy Macau recorded 99 per cent  hotel occupancy, while Cotai Phase 4 remained on track for completion in 2027.

Macau.- Macau casino operator Galaxy Entertainment Group has reported Q3 net revenue of HK$12.692bn (US$1.62bn), up 7 per cent from the previous quarter and 4 per cent year-on-year. For the three months to September 30, the group posted adjusted EBITDA of HK$3.688bn (US$470.7m), up from HK$3.341bn (US$426.4m) a year earlier and HK$3.380bn (US$431.4m) in the previous quarter.

The increase in earnings was partly influenced by favourable gaming outcomes. The operator estimated that gaming luck added HK$584m (US$74.5m) to adjusted EBITDA. After excluding this contribution, normalised adjusted EBITDA stood at HK$3.104bn (US$396.2m), a 7 per cent decline from HK$3.327bn (US$424.7m) a year earlier.

Gaming revenue rose 6 per cent year-on-year to HK$10.324bn (US$1.32bn), while non-gaming revenue edged down to HK$1.698bn (US$216.7m) from HK$1.729bn (US$220.7m). Revenue from construction materials also declined, falling to HK$670m (US$85.5m) from HK$727m (US$92.8m).

The group’s gross gaming revenue (GGR) rose 5 per cent year-on-year to HK$12.875bn (US$1.64bn), driven by a 41 per cent increase in VIP revenue to HK$2.883bn (US$368m) and an 8 per cent rise in electronic gaming to HK$798m (US$101.9m). Mass-market GGR, however, fell 3 per cent to HK$9.194bn (US$1.17bn).

Galaxy Macau leads property revenue

Galaxy Macau accounted for the largest share of group revenue, with net revenue rising 7 per cent year-on-year to HK$10.842bn (US$1.38bn). Its adjusted EBITDA increased 15 per cent to HK$3.537bn (US$451.5m). Normalised adjusted EBITDA was HK$3bn (US$382.9m), down 3 per cent year-on-year.

Hotel occupancy across Galaxy Macau’s nine hotels reached 99 per cent for the quarter. At StarWorld Macau, net revenue declined 11 per cent to HK$1.1bn (US$140.4m), while adjusted EBITDA fell 24 per cent to HK$279m (US$35.6m). The property recorded 100 per cent hotel occupancy.

Broadway Macau generated HK$51m (US$6.5m) in net revenue, down 18 per cent year-on-year, while adjusted EBITDA increased to HK$7m (US$893,000) from HK$1m (US$128,000) in the same period last year.

The group’s construction materials division recorded adjusted EBITDA of HK$150m (US$19.1m), a 27 per cent decline year-on-year. Galaxy Entertainment attributed the decrease mainly to weaker demand in Hong Kong and mainland China, higher energy costs and reduced contributions from Hong Kong International Airport’s Three-Runway System following the completion of major works.

On its development pipeline, Galaxy Entertainment said fitting-out work continued at its Phase 4 project in Cotai, which remains scheduled for completion in 2027. The 600,000-square-metre development will include five luxury hotels with around 1,350 rooms and suites, a 5,000-seat theatre, dining and retail facilities, a water resort deck and a casino.