Galaxy Entertainment's Strong Q1 2025 Performance Overview

Galaxy Entertainment Group Achieves Remarkable Q1 Results

Leading Macau’s Non-Gaming Diversification Through MICE, Entertainment and Sporting Events

Group Adjusted EBITDA Reaches $3.3 Billion
Year-on-Year Growth of 16%

Capella at Galaxy Macau Soft Launched in May

Final Dividend of $0.50 Per Share Expected in June

Galaxy Entertainment Group (“GEG” or the “Company”) (HKEx stock code: 27) has announced impressive financial results for the three-month period ending March 31, 2025. In HK dollar terms, the Group saw a net revenue of $11.2 billion, marking a noteworthy 6% increase compared to the previous year, despite a slight decrease of 1% from the previous quarter. Equally impressive is the Adjusted EBITDA of $3.3 billion, reflecting a year-on-year increase of 16% and a minor quarter-on-quarter growth of 2%.

Mr. Francis Lui, Chairman of GEG, expressed satisfaction with the quarter's performance, emphasizing the success across all business segments—especially in the premium mass market. Innovations like smart tables and ongoing property enhancements enhanced the customer experience.

Despite global economic uncertainties, the overall resilience of the Macau market continues to shine through, with Q1 2025 Gross Gaming Revenue (“GGR”) reaching $56.0 billion, which is 76% of the GGR level observed in 2019. The local government, led by Chief Executive Mr. Sam Hou Fai, is dedicated to fostering a diversified economy, and GEG is committed to supporting these initiatives.

Financial Metrics and Casino Performance

The total GGR for GEG during Q1 2025 stood at $10.9 billion, noting a robust increase of 14% against last year, while mass GGR reached $8.2 billion, up 6% year-on-year. Meanwhile, the all-important Adjusted EBITDA position for the Group was affected due to luck adjustments, yet the figures remain strong, indicating a positive trajectory overall.

Galaxy Macau™ continues to lead the charge as the primary contributor to group revenues, recording a net revenue of $9.1 billion, which is a significant increase of 10% over the previous year. StarWorld Macau also joined the impressive performance record, with a 100% occupancy rate achieved during the quarter. Although StarWorld Macau reported a decrease in net revenue, it still showcases its potential with measures in place for future upgrades.

Entertainment and Upcoming Developments

The first quarter of 2025 witnessed Galaxy Macau™ hosting a variety of high-profile entertainment events that contributed significantly to foot traffic. Not only was the Galaxy International Convention Center alive with concerts, but the Galaxy Arena has positioned itself as a principal venue attracting diverse audiences.

This month will feature an exciting lineup, including K-pop sensations and returning legendary artists, marking a pivotal moment for GEG as it ramps up its entertainment offerings. Additionally, the soft launch of the ultra-luxury Capella at Galaxy Macau adds an enticing new dimension to GEG's portfolio, emphasizing a commitment to high-end luxury dynamics in a competitive market.

Pioneering Non-Gaming Investments

As part of its strategy to diversify income streams, GEG is focused on expansive non-gaming investments. These include retail, food & beverage offerings, and family-friendly entertainment facilities. The construction phase of Phase 4 aims to further entice families and entertainment seekers, with the aim of providing an integrated resort experience unrivaled in the region.

On the operational front, GEG acknowledges the recent remarks from Macau's government regarding potential challenges for the upcoming year. However, the Group remains optimistic, believing that proactive measures and adaptation to market conditions will sustain growth.

Macau's Growing Tourism Landscape

With the continued growth of international visitors, particularly from mainland China and the Greater Bay Area, GEG holds a strong position to capitalize on this emerging trend. By enhancing tourism initiatives in collaboration with government efforts, GEG is optimistic about the future.

Frequently Asked Questions

What are Galaxy Entertainment's recent financial highlights for Q1 2025?

Galaxy Entertainment reported a 6% year-on-year increase in net revenue, reaching $11.2 billion, along with an Adjusted EBITDA of $3.3 billion, marking a 16% increase.

How has the Macau market performed recently?

The Macau market showed resilience with a Gross Gaming Revenue of $56.0 billion in Q1 2025, recovering to 76% of pre-pandemic levels.

What initiatives does Galaxy Entertainment have for non-gaming investments?

GEG is focusing on expanding its retail and entertainment offerings, with significant investment in family-friendly attractions and services.

What upcoming events are planned at Galaxy Macau?

Galaxy Macau is set to host notable concerts, including performances from K-pop idols and renowned international artists throughout May and June.

What future developments are in the pipeline for Galaxy Entertainment?

The Group anticipates launching the ultra-luxurious Capella at Galaxy Macau soon while progressing with its significant Phase 4 developments aiming to enhance its appeal as a destination for tourism and leisure.

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