Galaxy Entertainment lifts Q3 adjusted EBITDA 10% to HK$3.7bn

Galaxy Entertainment Group reported a 10% year-on-year increase in third-quarter adjusted EBITDA, to HK$3.7 billion. Favourable table results contributed about HK$584 million to that total, the operator said.

At StarWorld Macau, on the peninsula, net revenue declined 11% to HK$1.1 billion while adjusted EBITDA fell 24% to HK$279 million. According to GEG, renovation work at the property's hotel reduced EBITDA by about HK$20 million during the quarter. The renovated rooms and suites are slated for completion in the first quarter of 2027. Broadway Macau's adjusted EBITDA was HK$7 million, compared with HK$1 million a year earlier. The Construction Materials Division's contribution was HK$150 million, a 27% fall.

Visitor arrivals rose 8% to around 11.2 million, GEG noted, though Macau's gross gaming revenue in Q3 totalled HK$58.5 billion, a 4% decline year on year. Market GGR was up 3% at HK$181.7 billion for the first nine months. October GGR was down 10% despite Golden Week, so the slowdown has continued into the final quarter. Lui acknowledged that "GGR growth has moderated in the near term" and listed possible taxation policy changes, slower global economic growth and geo-political uncertainty among the short-term factors. He said the firm still sees Macau growing in the medium and long term because household wealth is rising in mainland China.

GEG's net position at the end of September was HK$34.4 billion, from HK$36.4 billion in cash and liquid investments less HK$2 billion of debt. Shareholders received an interim dividend of HK$0.90 per share on 15 September. Lui bought GEG shares in October, when Macau gaming stocks were weak, ahead of these figures.

During the quarter, fit out work continued on Phase 4 of Galaxy Macau. The 600,000 square metre development is set to include a casino, a theatre with 5,000 seats and five hotels offering roughly 1,350 keys. Completion is scheduled for 2027.