When completed in 2027, the group’s Cotai Phase 4 project will feature five ultra-luxury hotels and 1,350 rooms and suites.
Galaxy Entertainment third-quarter earnings reach HK$3.7 billion, up 10 percent
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Galaxy Entertainment Group (GEG) reported unaudited third quarter numbers last week with consolidated sales rising 4 percent from a year ago to HK$12.7 billion (US$1.6 billion). Net gaming revenues rose 6 percent to HK$10.3 billion while non-gaming slipped 2 percent to HK$1.7 billion.
At the property level, revenues at Galaxy Macau gained 7 percent to HK$10.8 billion, while turnover at StarWorld and Broadway dropped 11 percent and 18 percent respectively.
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The group’s adjusted EBITDA expanded 10 percent to HK$3.7 billion as operating expenditure came in at 3 percent lower. Win rates across every reported category improved. Rolling chip win rates rose to 4.8 percent from 3.1 percent. Mass table climbed to 28.4 percent from 26.7 percent while electronic gaming win rates reached 3.2 percent from 2.7 percent.
Despite the industry’s 4 percent contraction in gaming revenues during the quarter, GEG reported a 5 percent increase in GGR on the back of better VIP and electronic gaming activity. GEG’s mass GGR fell 3 percent to HK$9.2 billion, while VIP GGR jumped 41 percent to HK$2.9 billion.
Morgan Stanley estimates that GEG’s GGR market share increased by 170 basis points from the previous quarter to 22.4 percent. Reinvestments rose 80 basis points to 21.4 percent.
The outlook for Galaxy
The group stated that taxation policy changes, slower global economic growth, and ongoing geo-political uncertainty continue to weigh on the immediate market outlook for the gaming industry.
As of 30 September 2026, cash and liquid investments were HK$36.4 billion, though included HK$2 billion debt. In September, GEG paid an interim dividend of HK$0.90 per share. Together with the final dividend of HK$0.80 per share paid in June, total dividends paid during the first nine months of 2026 were HK$1.70 per share.
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The group’s Cotai Phase 4 is targeted for completion in 2027, which management described as being a game changer for the business. The property extension will include five ultra-luxury hotels with approximately 1,350 rooms and suites, along with a 5,000-seat theater, a water resort deck, and a casino.
