Galaxy Entertainment Group: Q2 and Interim Results 2025

Imagery Source: The Macao news
Information Source: Galaxy Entertainment Group

LEADING MACAU’S NON-GAMING DIVERSIFICATION THROUGH MICE, ENTERTAINMENT AND SPORTING EVENTS

Q2 2025 GROUP ADJUSTED EBITDA OF $3.6 BILLION, UP 12% YEAR-ON-YEAR & UP 8% QUARTER-ON-QUARTER

ANNOUNCED INTERIM DIVIDEND OF $0.70 PER SHARE

CAPELLA AT GALAXY MACAU EXCLUSIVE PRIVATE PREVIEW WELL RECEIVED BY ITS HIGH-VALUE CUSTOMERS
Galaxy Entertainment Group (“GEG”, “Company” or the “Group”) (HKEx stock code: 27) today reported results for the three-month and six-month periods ended 30 June 2025. (All amounts are expressed in Hong Kong dollars unless otherwise stated)
Mr. Francis Lui, Chairman of GEG, said:
“Today, I am pleased to report solid performance for the Macau market and GEG in Q2 and the first half of 2025. Despite global tariff disruptions, continued economic slowdown and regional competition, Macau remained resilient in Q2 2025 with Gross Gaming Revenue (‘GGR’) growing 8% year-on-year and 6% quarter-on-quarter to $59.3 billion. GEG delivered solid results and growth in market share under competitive market conditions. We managed to drive every segment of the business, particularly the premium mass.
For the first half of 2025, the Group reported Net Revenue of $23.2 billion, up 8% year-on-year. Adjusted EBITDA was $6.9 billion, up 14% year-on-year. For Q2, the Group’s Net Revenue was $12.0 billion, up 10% year-on-year and up 8% quarter-on-quarter. Adjusted EBITDA was $3.6 billion, up 12% year-on-year and up 8% quarter-on-quarter. The ultra-luxury Capella at Galaxy Macau, our latest addition to GEG’s hotel portfolio, offered exclusive previews in May and contributed to our strong performance over the Golden Week. In Jun, we hosted K-pop star G-Dragon and Hong Kong-acclaimed singer Jacky Cheung at our Galaxy Arena, which led to a record high number of single-day visitations of over 123,000 to Galaxy Macau™.
The Group’s balance sheet remains healthy and liquid, with cash and liquid investments of $30.7 billion as of 30 June 202,5, with minimal debt. This financial strength allows us to fund our development pipeline, explore overseas opportunities and return capital to shareholders via dividends. The previously announced final dividend of $0.50 per share was paid in Jun, and today the Board announced an interim dividend of $0.70 per share, payable in October 2025. This again demonstrates our confidence in the medium to longer term outlook for Macau in general and GEG specifically.
We continue to compete through our exceptional products and service and ongoing property enhancements, including our retail, food & beverage, multiple hotels and the Grand Resort Deck. More importantly, we continue to leverage the competitive edge of our MICE facilities and Galaxy Arena. Over the past two years, it has been proven that entertainment shows and events played a key role in driving new and repeat customers to Macau. During the first half of 2025, we have held a total of approximately 190 entertainment, sports and MICE events, and experienced a 65% year-on-year increase in the foot traffic at Galaxy Macau™.
In Q2, we hosted multiple mega entertainment events, such as in April the ITTF World Cup Macao 2025, one of the world’s most prestigious table tennis events. In May, we hosted the Wakin Chau World Tour and K-pop star BTS’s j-hope. In Jun, we had K-pop group BIGBANG’s G-Dragon and the acclaimed Hong Kong singer Jacky Cheung’s concerts, all experienced overwhelming customer demand. Post Q2 in July, we hosted one of America’s hottest comedy stars, Jimmy O. Yang’s first live performance in Macau, and iugus,twe hosted ‘King of Asian Pop’ Eason Chan’s Concert. These entertainment events contributed significantly to our business. In November, we will support the National Games and host its Table Tennis Competition in Galaxy Arena. We remain optimistic about mega events tourism in the second half of the year.
We previously advised that we had completed the full rollout of smart tables. We are now beginning to experience the benefits of this technology and are leveraging the knowledge gained from the data to provide a better customer experience.
In June, GEG announced that the Waldo Casino will cease operation by the end of this year due to commercial considerations. GEG’s employees working at the Waldo Casino will be reallocated to its other properties and casinos. Related departments will discuss the best options with the team members and provide them with a series of vocational training programs to assist them in adapting to their new working environment. GEG would like to thank the Macau residents, patrons and the community for their support of the Waldo Casino over the years.
GEG recently won two prestigious awards at the Global Gaming Awards Asia-Pacific 2025, including the ‘Integrated Resort of the Year’ for Galaxy Macau™ and the ‘Casino Operator of the Year’ for the Group for the second consecutive year. Additionally, in The MICHELIN Guide Hong Kong Macau 2025 List, four of our restaurants collectively earned five MICHELIN stars. In the Forbes Travel Guide 2025 List, Galaxy Macau™ proved its unrivalled position as an integrated resort with the most Five-Star hotels under one roof of any luxury resort company worldwide for the third consecutive year. These recognitions from the international community are testaments to GEG’s outstanding achievements in promoting the sustainable development of integrated tourism, leisure and the gaming industry.
Recently, the all-suite Capella at Galaxy Macau offered exclusive previews in May to our most distinguished VIPs, offering stays by invitation only, and we expect its full opening in the coming months. The exclusive preview of Capella at Galaxy Macau has been well received by the market and has been helping us to attract ultra-high-value customers.
On the development front, we are progressing well with the construction of Phase 4. Construction of the Super Structure and the external facade has been completed, and we are progressing to the next stage of development, which is fitting out the building. We have entered into a new contract for the internal fitting out works of the approximately 600,000 sqm Phase 4 development, which includes multiple high-end hotel brands that are new to Macau, together with an approximately 5,000-seat theatre, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino. Phase 4 is targeted to be completed in 2027. We also continue to evaluate development opportunities in the Greater Bay Area and overseas markets on a case-by-case basis, including Thailand
After examining the economic situation and the actual operations of the gaming industry, the Macau Government announced in June that it had lowered its GGR estimate for 2025 from MOP240 billion to MOP228 billion. We acknowledge that there are shorter-term challenges, including the slowing global economy and potential tariffs' impact; however, we remain confident in the medium to long-term outlook for Macau. As always, GEG remains fully committed to making a positive contribution to Macau’s leisure and tourism industry.
Finally, I would like to thank all our team members who deliver ‘World Class, Asian Heart’ service every day and contribute to the success of the Group.”
Q2 & INTERIM 2025 RESULTS HIGHLIGHTS GEG:
Well Positioned for Future Growth
  • 1H Group Net Revenue of $23.2 billion, up 8% year-on-year
  • 1H Group Adjusted EBITDA of $6.9 billion, up 14% year-on-year • 1H Net Profit Attributable to Shareholders (“NPAS”) of $5.2 billion, up 19% year-on-year
  • Q2 Group Net Revenue of $12.0 billion, up 10% year-on-year and up 8% quarter-on-quarter
  • Q2 Group Adjusted EBITDA of $3.6 billion, up 12% year-on-year and up 8% quarter-on-quarter
  • Normalised Q2 Adjusted EBITDA was $3.2 billion after adjusting for good luck of $407 million l
  • A test twelve months Adjusted EBITDA of $13.0 billion, up 13% year-on-year and up 3% quarter-on-quarter
Galaxy MacauTM: Primary Driver to Group Earnings
  • 1H Net Revenue of $19.1 billion, up 13% year-on-year
  • 1H Adjusted EBITDA of $6.3 billion, up 18% year-on-year
  • Q2 Net Revenue of $10.0 billion, up 16% year-on-year and up 9% quarter-on-quarter
  • Q2 Adjusted EBITDA of $3.3 billion, up 20% year-on-year and up 10% quarter-on-quarter
  • Normalised Q2 Adjusted EBITDA was $2.9 billion after adjusting for good luck of $410 million • Hotel occupancy for Q2 across the nine hotels was 98%
StarWorld Macau: Continuing with Major Property Upgrades
  • 1H Net Revenue of $2.4 billion, down 10% year-on-year
  • 1H Adjusted EBITDA of $653 million, down 21% year-on-year
  • Q2 Net Revenue of $1.2 billion, down 11% year-on-year and down 6% quarter-on-quarter
  • Q2 Adjusted EBITDA of $303 million, down 22% year-on-year and down 13% quarter-on-quarter
  • Normalised Q2 Adjusted EBITDA was $306 million after adjusting for the bad luck of $3 million
  • Hotel occupancy for Q2 was 100%
Broadway Macau™, City Clubs and Construction Materials Division (“CMD”)
  • Broadway Macau™: Q2 Adjusted EBITDA was $4 million, versus $8 million in Q2 2024 and $2 million in Q1 2025
  • City Clubs: Q2 Adjusted EBITDA was $2 million, versus $5 million in Q2 2024 and $1 million in Q1 2025
  • CMD: Q2 Adjusted EBITDA was $238 million, down 7% year-on-year and up 29%quarter-on-quarterr. Balance Sheet: Remained Healthy and Liquid
  • As at 30 June 2025, cash and liquid investments were $30.7 billion, and the net position was $30.3 billion after debt of $0.4 billion
  • Paid the previously announced final dividend of $0.50 per share in June 2025
  • Announced an interim dividend of $0.70 per share payable on or about 31 October 2025
Development Update: Capella at Galaxy Macau offered exclusive private previews in May; Continue ramping up GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau; Progressing with Phase 4
  • Capella at Galaxy Macau offered exclusive private previews in May
  • Cotai Phase 3 – Ramping up GICC, Galaxy Arena, Raffles at Galaxy Macau and Andaz Macau
  • Cotai Phase 4 – Our efforts are firmly focused on the development of Phase 4, which has a strong focus on non-gaming, primarily targeting entertainment, family facilities and also includes a casino
  • International – Continuously exploring opportunities in overseas markets, including Thailand
Outlook
Looking forward, we continue to remain llaser-focusedon on our customer service standards. Our target is to ensure that each customer interaction is memorable and exceptional. We continue to progressively upgrade our resort facilities to ensure that they remain world-class amenities and highly competitive. We continue to yield all our existing assets, including hotels, food and beverage, retail, resort and cinema facilities. Costs are being carefully managed to deliver operating leverage as we continue to grow the top line.
We previously advised that we had completed the full rollout of smart tables. We are now beginning to experience the benefits of this technology and are leveraging the knowledge gained from the data to provide a better customer experience.
Large-scale entertainment is providing a significant boost to foot traffic across our resorts. Mega entertainment events have resulted in a substantial increase in gaming, retail, food and beverage and hotel revenues. We are working hard to continue to build the Galaxy Arena brand as a world-class entertainment arena and to attract even more large-scale mega entertainment events into the future. In November, we will support the National Games and host its Table Tennis Competition in Galaxy Arena. We remain optimistic about mega events tourism in the second half of the year.
The recent exclusive preview of Capella at Galaxy Macau has been exceptionally well received by high-value customers, and we will progressively open all the remaining facilities over the coming months. On the development front, we are progressing well with the construction of Phase 4. Construction of the Super Structure and the external facade has been completed, and we are progressing to the next stage of development, which is fitting out the building. We have entered into a new contract for the internal fitting out works of the approximately 600,000 sqm Phase 4 development, which includes multiple high-end hotel brands that are new to Macau, together with an approximately 5,000-seat theatre, extensive F&B, retail, non-gaming amenities, landscaping, a water resort deck and a casino. Phase 4 is targeted to be completed in 2027.
Originally, Thailand’s Parliament was scheduled to debate the Entertainment Complex Bill on 9 July 2025. However, the Parliament decided to withdraw the Bill from discussion. We await further updates on the potential progress of the Entertainment Complex Bill. We believe that an integrated resort in Bangkok would be highly accretive to our resort portfolio. We continue to remain very interested in Thailand.
The state of the world economy and ongoing discussions on tariffs, whilst gaining significant media coverage,  have not impacted gaming revenue as much as some analysts had previously predicted. Macau still ranks in the top three destinations of choice by Chinese travellers.
International customer development continues to be a priority, and we are leveraging our marketing offices in Tokyo, Seoul and Bangkok. In the first half of 202,5, international visitor arrivals to Macau grew 15% year-on-year to 1.3 million.
We remain confident in the outlook for Macau. The reasons for this confidence include the ongoing improvement in transportation infrastructure, making it easier to travel to and from Macau, as well as within Macau. That includes the recent extension of Macau LRT’s new line connecting the Hengqin Port and the commencement of Macau International Airport expansion and reclamation project, among others. The opening of the fourth Macau-Taipa bridge in late 20244 further improved travel within Macau.
We remain confident in the medium to longer-term outlook for Macau. In the interim, we will continue to leverage assets and staff to grow the business, and to support Macau’s development into the World Centre of tourism and leisure.
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Galaxy Entertainment Group
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