Galaxy Entertainment Group Ltd, a prominent casino operator based in Macau, announced a robust financial performance for the third quarter of 2023. The company reported an adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) of slightly over HKD3.34 billion, equivalent to approximately US$429.7 million.
This figure reflects a 13.6% increase from the corresponding quarter in 2022, as documented in unaudited highlights filed with the Hong Kong Stock Exchange. Notably, Galaxy Entertainment experienced a 14.0% rise in net revenue, reaching HKD12.16 billion for the three months ending September 30.
Gaming Revenue Breakdown and Challenges
The group's gross gaming revenue (GGR) surged to HKD12.24 billion, marking a 20.6% year-on-year increase. A deeper look reveals that mass-market GGR recorded a year-on-year growth of 12.8%, amounting to HKD9.46 billion, while VIP revenue demonstrated substantial growth, climbing 85.8% to HKD2.04 billion. Meanwhile, revenue from the electronic gaming segment rose by 10.8%, totaling HKD738 million.
The flagship property, Galaxy Macau, significantly contributed to this success with net revenue of HKD10.09 billion for the quarter, reflecting a 20.1% increase from last year. This property's adjusted EBITDA stood at nearly HKD3.07 billion, a 20.0% year-on-year rise, with its EBITDA margin remaining stable at 30% from the previous year.
However, external events, including Super Typhoon Ragasa, temporarily hindered operations, with casinos suspending activities for 33 hours. Chairman Francis Lui Yiu Tung noted this disruption in the earnings call, emphasizing the typical lower visitor turnout in September, which is often offset by the Golden Week in October.
Strategic Developments and Future Outlook
Despite short-term setbacks, Galaxy Entertainment's strategic initiatives demonstrate forward-thinking moves. As of September 30, the group maintained a strong cash and liquid investments position at HKD36.8 billion, with a net cash standing at HKD34.8 billion and a manageable debt load of HKD2 billion.
Aligning with its growth strategy, the company paid an interim dividend of HKD0.70 per share, scheduled on October 31. [Francis Lui highlighted the group’s extensive schedule of hosting approximately 260 entertainment, sports, arts and culture, and MICE events in the first nine months of 2023, contributing significantly to a 41% increase in foot traffic at Galaxy Macau.]
Future plans include progressing with Phase 4 of Galaxy Macau, envisioning the introduction of multiple high-end hotel brands and additional attractions by 2027. Meanwhile, Galaxy is exploring the potential development of a casino resort in Thailand amidst recent government changes. Despite Thailand's new administration's low prioritization of casino developments, Galaxy Entertainment remains vigilant about future opportunities.
Furthermore, on October 31, the gaming operations of Waldo Casino concluded. This venue previously functioned under Galaxy's license and was located in Macau's Waldo Hotel. With these strategic decisions, Galaxy Entertainment sets the stage for continued growth and adaptation in the ever-evolving market landscape.
Source: Galaxy Ent 3Q EBITDA at US$430mln, as revenue up 14pct y-o-y, GGRAsia, November 6, 2025.
Posted by Wizard
Nov 07 2025
Nov 07 2025
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