Key Takeaways
Macau casino operator Galaxy Entertainment Group (00027.HK) announced an 11 percent year-over-year increase in first-quarter net revenue to HKD 12.4 billion, driven by a surge in visitor arrivals to the gambling hub.
"Our business performance over the Chinese New Year was solid, and similar to last year, we experienced a longer tail following the holiday period," Francis Lui, chairman of Galaxy Entertainment, said in a statement.
Adjusted EBITDA for the quarter rose 8 percent from a year earlier to HKD 3.6 billion. However, the results represented a 10 percent and 17 percent decline in revenue and EBITDA, respectively, compared to the fourth quarter of 2025. The company said the sequential drop was impacted by about HKD 2 million in unfavorable luck, compared to HKD 730 million in good fortune in the prior quarter. After adjusting for luck, adjusted EBITDA was flat quarter-over-quarter.
The company's positive annual growth was supported by a 14 percent increase in visitor arrivals to Macau, which reached 11.2 million in the first quarter. The flagship Galaxy Macau property saw its net revenue grow 13.1 percent to HKD 10.34 billion. The group's balance sheet remains robust, with cash and liquid investments totaling HKD 39.2 billion as of March 31.
Looking ahead, management is focused on the development of Phase 4 of Galaxy Macau, which is slated for completion in 2027 and will feature a 5,000-seat theater and new non-gaming attractions. Lui also noted that the upcoming FIFA World Cup has historically impacted gaming revenue, and the company plans to schedule additional promotional events to neutralize the short-term effects.
The solid year-on-year growth demonstrates a continued recovery in Macau, but the sequential dip highlights the inherent volatility in casino operations. Investors will be watching to see if the company can maintain momentum as it navigates seasonal factors and invests in its large-scale expansion projects.
This article is for informational purposes only and does not constitute investment advice.
