Galaxy Entertainment Group (27) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue reached HK$11.2 billion, up 6% year-over-year and down 1% quarter-over-quarter.

• Adjusted EBITDA was HK$3.3 billion, up 16% year-over-year and 2% quarter-over-quarter; normalized Adjusted EBITDA (excluding luck) was HK$3.0 billion, up 7% year-over-year and down 9% quarter-over-quarter.

• Galaxy Macau was the primary earnings driver, with strong casino and non-gaming performance, and hotel occupancy at 99%.

• The balance sheet remains robust with HK$33.0 billion in cash and liquid investments and a net position of HK$29.0 billion after HK$4.0 billion in debt.

• Final dividend of HK$0.50 per share payable in June 2025, reflecting confidence in long-term prospects.

Financial highlights

• Group net revenue: HK$11.2 billion (+6% YoY, -1% QoQ).

• Adjusted EBITDA: HK$3.3 billion (+16% YoY, +2% QoQ); normalized Adjusted EBITDA: HK$3.0 billion (+7% YoY, -9% QoQ).

• Galaxy Macau: Net revenue HK$9.1 billion (+10% YoY, flat QoQ); Adjusted EBITDA HK$3.0 billion (+15% YoY, +6% QoQ).

• StarWorld Macau: Net revenue HK$1.2 billion (-9% YoY, -4% QoQ); Adjusted EBITDA HK$350 million (-20% YoY, -4% QoQ).

• Construction Materials: Adjusted EBITDA HK$185 million (+68% YoY, -33% QoQ).

Outlook and guidance

• Management remains confident in Macau's long-term outlook despite short-term challenges from global economic slowdown and tariffs.

• Continued focus on non-gaming amenities, entertainment, and property enhancements to drive growth.

• Ongoing development of Cotai Phase 4, targeting completion in 2027, with a focus on entertainment, family facilities, and new hotel brands.

• Capella at Galaxy Macau soft launched in May 2025, with full opening expected in coming months.

• Visitor arrivals to Macau up 11% YoY, with further growth expected from visa relaxations and infrastructure improvements.