Macau casino operator Galaxy Entertainment Group Ltd reported first-quarter 2026 adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) of just under HKD3.58 billion (US$456.8 million). The result was up 8.5 percent from the prior-year period, according to an announcement on Tuesday.
Net revenue in the three months to March 31 rose by 10.7 percent from a year earlier, to HKD12.40 billion.
The group’s gross gaming revenue (GGR) in the January to March period stood at HKD12.73 billion, up 16.4 percent from a year ago.
Brokerage Jefferies said in a memo following the operator’s first-quarter results earnings call that Galaxy Entertainment’s management mentioned a “strong position in premium mass, driving higher adjusted EBITDA margins of 28 percent to 30 percent, above peer levels”.
“VIP/mass breakdown is 18.5 percent/75.4 percent, with premium mass – average daily theoretical HKD10,000 to HKD15,000 plus – accounting for circa 45 percent of total mass, and regular mass at circa 55 percent,” wrote Jefferies’ analysts Annie Ling and Jingjue Pei.
Galaxy Entertainment runs its flagship casino resort Galaxy Macau (pictured) on Cotai; the StarWorld Hotel, the group’s only venue on Macau peninsula; and Broadway Macau, the mass-market focused property next door to Galaxy Macau.
Galaxy Macau recorded net revenue of HKD10.34 billion for the reporting period, a 13.1-percent increase from a year ago. The property’s adjusted EBITDA stood at HKD3.34 billion, up from HKD3.02 billion in the first quarter of 2025.
Francis Lui Yiu Tung, chairman of Galaxy Entertainment, was quoted in the announcement as saying that the group’s first-quarter adjusted EBITDA “recorded around HKD2 million of unfavourable luck”.
“Our business performance over the Chinese New Year was solid, and similar to last year, we experienced a longer tail following the holiday period,” he added.
Mr Lui said Galaxy Entertainment’s balance sheet “remains healthy and liquid,” with cash and liquid investments of HKD39.2 billion.
“This financial strength allows us to fund our development pipeline, explore overseas opportunities and return capital to shareholders through dividends,” he stated.
The chairman also said the Capella at Galaxy Macau, which officially opened in February this year, “has continued to ramp up successfully”.
“We have also recently expanded our premium gaming area, Horizon Plus, from six private salons to 10, enriching our offerings for high-value customers,” he noted.
The executive also noted that in the second quarter, the FIFA World Cup will be hosted from June 11 to July 19.
“Historically, we have observed that customer visitation patterns and gaming revenue can be impacted during the World Cup period, alongside an increase in sports betting activity,” Mr Lui said. “We will schedule additional events and other promotional activities to neutralise the short-term impact of the World Cup.”
In its Tuesday memo, Jefferies cited the casino firm’s management as saying it expected the World Cup impact to be a “lesser headwind versus 2018”, given that its gaming customers – which it described as “mass-market skew” – were likely “less sensitive than VIP” patrons.
The brokerage also noted that the company had completed the renovation of the gaming floors on level one and three at the StarWorld property, along with a “refit” of the food and drink areas at the complex.
“Recently, it [Galaxy Entertainment] commenced the renovation of the hotel rooms and suites” at StarWorld, the institution noted. “Management anticipates all hotel rooms to be fully completed by the first quarter of 2027.”
In Tuesday’s announcement, Galaxy Entertainment also said it was “firmly focused” on the development of Phase 4 of Galaxy Macau.
Phase 4, scheduled to be completed in 2027, is to include 1,350 suites and hotel rooms, a 5,000-seat theatre, retail, a water resort deck, and additional casino facilities.
“Phase 4 labour ramp-up is expected to be largely absorbed within pre-opening cost through 2027,” the Jefferies analysts wrote.
(Updated 8.08 pm, May 12)
