Galaxy Entertainment Group reports solid Q2 2025 performance despite market challenges; continues non-gaming expansion

Key points:

– Q2 2025 net revenue rose 10% year-on-year to HK$12.0bn; adjusted EBITDA increased 12% to HK$3.6bn

– Galaxy Macau remained the top earnings contributor with Q2 EBITDA of HK$3.3bn and 98% hotel occupancy

– GEG hosted 190 entertainment, sports and MICE events in 1H 2025, boosting visitor traffic by 65%

– Phase 4 Cotai development, featuring new hotels and a 5,000-seat theatre, is on track for 2027 completion

Galaxy Entertainment Group (GEG) has announced its financial results for the second quarter and first half of 2025, highlighting revenue growth, increased market share and continued investment in Macau’s integrated resort and non-gaming sectors.

For Q2 2025, GEG posted net revenue of HK$12.0bn, an increase of 10% year-on-year and 8% quarter-on-quarter.

Adjusted EBITDA reached HK$3.6bn, up 12% from the prior year and 8% from the previous quarter. After accounting for favourable gaming luck of HK$407m, normalised EBITDA was HK$3.2bn, down 1% year-on-year but up 7% sequentially.

The Group’s flagship property, Galaxy Macau, remained the primary earnings driver, generating Q2 net revenue of HK$10.0bn, up 16% year-on-year.

Adjusted EBITDA for the property was HK$3.3bn, an increase of 20% from the previous year.

Hotel occupancy across the resort’s nine hotels reached 98%.

While Galaxy Macau showed strong growth, StarWorld Macau faced challenges – with Q2 Net Revenue of HK$1.2bn, down 11% year-on-year and 6% quarter-on-quarter. Despite maintaining 100% hotel occupancy, the property’s Q2 Adjusted EBITDA fell to HK$303m, down 22% year-on-year.

The company is implementing major upgrades at StarWorld Macau, including enhancements to the main gaming floor, lobby and food and beverage options.

Broadway Macau, the company’s family-friendly entertainment resort, reported modest Q2 Adjusted EBITDA of HK$4m, compared to HK$8m in Q2 2024. The company announced that its Waldo Casino will cease operations by year-end due to commercial considerations, with employees being reallocated to other properties.

GEG continued to focus on non-gaming diversification during this period through large-scale entertainment, MICE (meetings, incentives, conferences and exhibitions) facilities and cultural events.

In the first half of 2025, the Group hosted approximately 190 events, contributing to a 65% year-on-year increase in foot traffic at Galaxy Macau. Performances by artists including G-Dragon, Jacky Cheung and BTS’s j-hope helped drive record visitation during the Golden Week holiday.

Additionally, the Group’s newest ultra-luxury property, Capella at Galaxy Macau, held exclusive previews in May and is expected to fully open in the coming months.

Phase 4 of the Cotai development, featuring multiple new hotel brands, a 5,000-seat theatre and expanded non-gaming amenities, also remains on track for completion in 2027.

The Group received multiple accolades during the first half of 2025, recently winning two prestigious spots 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.

GEG’s balance sheet also remained strong, with HK$30.7bn in cash and liquid investments as of 30 June 2025, and debt of just HK$0.4bn.

Good to know: The company announced an interim dividend of HK$0.70 per share, payable in October, following a final dividend of HK$0.50 per share paid in June

Looking forward, GEG expressed confidence in Macau’s medium to long-term prospects, citing infrastructure improvements such as the new Macau-Taipa bridge and expanded airport facilities.

As a region, Macau showed stable growth throughout this period. Despite global economic uncertainty and competitive regional markets, Macau’s Gross Gaming Revenue (GGR) in Q2 2025 rose 8% year-on-year and 6% quarter-on-quarter to HK$59.3bn, representing 83% of 2019 levels.

Visitor arrivals to Macau in the first half of the year reached 19.2 million, up 15% from 2024, driven by increases in both same-day and overnight visitors. Mainland China accounted for the majority of arrivals, with notable growth from the Greater Bay Area.

While acknowledging near-term risks from the global economy and tariffs, GEG expects continued growth in tourism and non-gaming revenues in the coming months, expressing optimism about the company’s outlook.

As our graph shows, with SJM Holdings yet to report its Q2 revenue (for reference, it generated $970m for Q1), Las Vegas Sands is a clear leader thanks to the behemoth that is Singapore’s Marina Bay Sands.

But Galaxy’s Q2 revenue puts it into a healthy second place out of Macau’s ‘big six’ concessionaires, being the only other operator to exceed $1.5bn in revenue via its Asia-based properties.

Melco’s Asia operations, however, (not just Macau) put it in third place, although both MGM China and Wynn Macau do not rank far behind. 

Macau’s results are looking more and more encouraging for operators, especially at a time when US counterpart Las Vegas is being discussed time and again for its declining tourism numbers. Galaxy is more than playing its part in Macau’s growth.