Macau gaming operator Galaxy Entertainment Group (GEG) reported strong performance for the first quarter of 2025, with net revenue reaching HK$11.2 billion ($1.46 billion). This represents a 6 percent increase year-on-year, despite a slight 1 percent decline compared to the previous quarter.
According to unaudited results released on Thursday, the group’s adjusted EBITDA stood at HK$3.3 billion ($429 million), reflecting a notable 16 percent increase year-on-year and 2 percent growth quarter-on-quarter.
The group’s total gross gaming revenue (GGR) for 1Q25 was HK$10.9 billion ($1.42 billion), up 14 percent year-on-year. Mass GGR reached HK$8.2 billion ($1.07 billion), increasing six percent year-on-year, while VIP GGR saw a substantial 52 percent year-on-year surge to HK$2 billion ($260 million). Electronic GGR also performed well at HK$729 million ($94.8 million), up 22 percent compared to the previous year.
Francis Lui, Chairman of GEG, attributed the solid results to the Group’s focus on driving every segment of the business, particularly the premium mass market through products and services offerings, ongoing property enhancements, and diverse entertainment. He noted satisfactory casino performance during the Chinese New Year period, which experienced a longer tail than in previous years.
The group maintains a healthy financial position with cash and liquid investments increasing to HK$33 billion ($4.29 billion). After deducting debt of HK$4 billion ($520 million), the net position stood at HK$29 billion ($3.77 billion).
This financial strength enables GEG to fund its development pipeline, explore overseas opportunities, and return capital to shareholders. The Board has recommended a final dividend of HK$0.5 ($0.064) per share payable in June 2025.
Despite overall positive results, Lui acknowledged challenges in the market, including geopolitical turbulence and continued economic slowdown. The Macau market showed resilience, with 1Q25 GGR of HK$56 billion ($7.28 billion), recovering to 76 percent of 2019 levels.
Capella boost
Capella at Galaxy Macau, the 10th hotel brand in GEG’s portfolio, soft-launched on May 7th, 2025, and the company anticipates having the property fully opened over the next few months, adding a significant boost to its portfolio.
The 17-storey property comprises approximately 100 high-end sky villas and suites. Each Sky Villa includes a balcony with an infinity-edge pool, outdoor lounge, sunroom, and a concealed winter garden, among other amenities.
According to an investment memo, Citigroup noted a positive impression of the Premium Mass room during an initial visit.
Named “Horizon Plus”—building on the “Horizon” rooms at both Galaxy Macau and StarWorld—this new Premium Mass area is positioned close to hotel elevators, allowing convenient access from guest suites to the gaming floor.
Near the entrance, there is an open gaming space with 16 baccarat tables, where minimum bets typically range from HK$5,000 to HK$10,000, as well as a dining area. Toward the back, six private salons are available, each with 2–3 baccarat tables, and some include KTV systems. The memo suggests “Horizon Plus” at Capella could emerge as a leading premium mass venue in Macau.
GEG is also progressing with the construction of Phase 4, which has a strong focus on non-gaming facilities primarily targeting entertainment and family activities. The 600,000-square-meter development will include multiple high-end hotel brands new to Macau, a 5,000-seat theater, extensive F&B outlets, retail spaces, and a water resort deck.
Phase 4 is scheduled for completion in 2027.
