Galaxy’s Q3 EBITDA Lift Shrinks as Favourable Gaming Adds $584 million
The group also reported a hotel occupancy of 99% across its nine properties
Galaxy Entertainment Group’s adjusted EBITDA climbed 10% year on year to HK$3.7 billion (US$472.06 million) in the third quarter, but favourable gaming results supplied HK$584 million of the total.
Excluding that benefit, normalised EBITDA fell 7% to HK$3.1 billion, while revenue rose 4% to HK$12.7 billion, according to the company’s unaudited results published on Thursday.
Normalised earnings also declined 9% from the previous quarter, tempering the headline growth.
Galaxy Macau accounted for most of the group’s operating strength, generating HK$10.8 billion in revenue and HK$3.5 billion in adjusted EBITDA.
Hotel occupancy averaged 99% across its nine properties.
Chairman Francis Lui said in the results announcement: “Capella at Galaxy Macau ramped up well and the expansion of Horizon Plus from six to ten private salons provided additional capacity to meet the demand from high-value customers and strengthened our position in the premium market,”
Growth Meets a Softer Market
The wider market offered a mixed backdrop. Macau recorded 32.2 million visitor arrivals in the first nine months, up 8.5% year on year, government statistics show, while third-quarter gaming revenue fell 4% to HK$58.5 billion.
October gaming revenue then dropped 10% year on year to MOP21.68 billion, despite the Golden Week holiday. The divergence highlights the challenge of converting higher visitor numbers into sustained gaming growth.
StarWorld Macau’s revenue decreased 11% to HK$1.1 billion and adjusted EBITDA fell 24% to HK$279 million. Galaxy said renovation work reduced quarterly EBITDA by about HK$20 million, with upgraded rooms and suites due for completion in early 2027.
Broadway Macau recorded HK$7 million in EBITDA, while the construction materials business contributed HK$150 million.
Investment and Uncertainty
Its Phase 4 development is targeted for completion in 2027 and is planned to include five hotels, about 1,350 rooms and suites, a 5,000-seat theatre and a casino. Management flagged near-term risks.
Lui said: “GGR growth has moderated in the near term, reflecting a combination of short-term factors, including possibly, taxation policy changes, slower global economic growth and ongoing geo-political uncertainty.”
The group nevertheless expects Macau’s market to expand over the medium and long term.
The Q3 results showcase a steady growth from the group’s Q1 results, which saw a robust adjusted EBITDA of HKD$3.576 billion.
