Company Reports

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per capita disposable income in China. Macao had a penetration rate of only 2% as of 2025, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is less than 2%. New hotel rooms by major operators in recent years should accommodate increased and extended visits from bigger spenders from the provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists is increasing. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Galaxy Entertainment's second-quarter gross gaming revenue, or GGR, and adjusted EBITDA fell 5% quarter-on-quarter. The company declared an interim dividend per share of HKD 0.90, up from HKD 0.70 a year ago.

Galaxy Entertainment's first-quarter gross gaming revenue fell 12% quarter on quarter, dragged down by an unfavorable VIP win rate. GGR market share fell 1.7 percentage points to 20.3%. Meanwhile, luck-adjusted EBITDA was largely flat at HKD 3.6 billion.

Benefiting from a favorable VIP win rate, Galaxy Entertainment's fourth-quarter gross gaming revenue grew 14% quarter on quarter, with GGR market share expanding by 1.5 percentage points to 21.8%. Meanwhile, luck-adjusted EBITDA improved 7% sequentially to HKD 3.6 billion.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per capita disposable income in China. Macao had a penetration rate of only 2% as of 2025, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is less than 2%. New hotel rooms by major operators in recent years should accommodate increased and extended visits from bigger spenders from the provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists is increasing. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Galaxy Entertainment's third-quarter gross gaming revenue, or GGR, grew 2% quarter on quarter. However, adjusted EBITDA decreased 6% to HKD 3.3 billion, and adjusted EBITDA margin fell 2.2 percentage points to 27.5%, due to one-off summer promotions.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists is increasing. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Macao welcomed 1.06 million tourists during the first seven days of the 2025 national holiday, according to the Macao Government Tourism Office. This implies a daily average of 150,773 visitors, up 7.4% from a year ago.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists is increasing. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Galaxy Entertainment's second-quarter gross gaming revenue grew 7.5% quarter on quarter, while adjusted EBITDA increased 8.3% to HKD 3.6 billion. The firm declared an interim dividend of HKD 0.70 per share, up from HKD 0.50 a year ago.

The share prices of Macao casinos surged 5%-11% after the release of June gross gaming revenue on July 1, which rose sharply by 19% from a year ago to MOP 21 billion, reaching 88.5% of the 2019 level—the highest since China lifted travel restrictions in January 2023.

Macao's 11 satellite casinos will cease operations by Dec. 31, 2025. SJM plans to acquire and convert two of its nine satellite casinos, L'Arc Macau and Casino Ponte 16, into self-promoted casinos, while the remaining seven, along with one each from Galaxy and Melco Resorts, will be closed.

Galaxy Entertainment's first-quarter gross gaming revenue fell 0.8% quarter on quarter. Adjusted EBITDA increased 1.8%, with adjusted EBITDA margin expanding by 0.8 percentage point amid disciplined cost control and operating efficiency.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists is increasing. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Galaxy Entertainment's fourth-quarter gross gaming revenue, or GGR, and adjusted EBITDA increased by 9% and 10%, respectively, from the previous quarter, reaching HKD 11 billion and HKD 3.2 billion. This reflects a sequential improvement in GGR market share to 19.8% from 19.0%.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per-capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 12%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists would increase. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

We maintain Galaxy’s fair value estimate at HKD 52.00 per share, given its in-line third-quarter results and growth momentum in October. Our tweaks to earnings forecasts are minor, and we think the shares are undervalued currently. We expect the firm’s efforts in product enhancement and sales team expansion, the rollout of radio frequency identification, or RFID, gaming tables, along with the continued ramp-up of Galaxy Macau phase 3, to strengthen its long-term competitiveness. This should drive growth in profitability as well as market share gain in the coming quarters.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per-capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 13%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists would increase. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Galaxy Entertainment, one of six casino licenseholders in Macao, benefits from insatiable Chinese demand for gaming, underpinned by rising per-capita disposable income in China. Macao has a penetration rate of less than 2%, compared with Las Vegas’ 13%. Excluding the neighboring Guangdong province, where only 8% of China’s 1.4 billion population resides, the penetration rate is merely 1%. The new hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces and drive the top line for integrated resort operators like Galaxy Entertainment. With the gradual ramp-up of traffic allowed on the Hong Kong-Zhuhai-Macao bridge, the new Hengqin border, and the Gongbei to Hengqin extension rail, Macao's carrying capacity for tourists would increase. In addition, neighboring Hengqin Island, 3 times the size of Macao, is under rapid development to complement Macao's growth.

Narrow-moat Galaxy delivered a strong set of second-quarter results, with 7.4% sequential growth in gross gaming revenue, or GGR, compared with the 2% drop in industry GGR, and a nice EBITDA margin expansion of 222 basis points to 29.1% with a 2% cut in operating expense from a quarter ago, despite expanding product and service offerings and the continued ramp-up of Galaxy Macau phase 3. This has led to an impressive GGR market share gain to 18.9% from 17.5% a quarter ago, and a 12.4% sequential growth in adjusted EBITDA to HKD 3.2 billion, which is 4% above Bloomberg consensus. Meanwhile, management is seeing further upticks in the quarter-to-date performance, with visitations rising 30% above the average level in the second quarter. The strong results and positive momentum are in line with our expectations, as the firm’s strategic moves in reconfiguration of gaming floors, and expanding the sales and hosting team, have improved the traffic flow and loyalty of premium mass clients.