Galaxy Entertainment Group (27) Q2 2025 earnings summary

Executive summary

• Net revenue for 1H 2025 rose 8% year-over-year to HK$23.2 billion; adjusted EBITDA up 14% to HK$6.9 billion; net profit attributable to shareholders up 19% to HK$5.2 billion.

• Q2 2025 net revenue was HK$12.0 billion, up 10% year-over-year and 8% quarter-on-quarter; adjusted EBITDA HK$3.6 billion, up 12% year-over-year and 8% quarter-on-quarter.

• Galaxy Macau was the primary earnings driver, with Q2 net revenue of HK$10.0 billion (up 16% year-over-year) and adjusted EBITDA of HK$3.3 billion (up 20% year-over-year); hotel occupancy 98%.

• Entertainment and MICE events drove record visitation, with over 123,000 single-day visitors and a 65% year-over-year increase in foot traffic at Galaxy Macau.

• Capella at Galaxy Macau offered exclusive previews in May, contributing to premium segment growth and targeting ultra-luxury customers.

Financial highlights

• Group net revenue: HK$23.2 billion (+8% YoY); adjusted EBITDA: HK$6.9 billion (+14% YoY); net profit attributable to shareholders: HK$5.2 billion (+19% YoY).

• Galaxy Macau: net revenue HK$19.1 billion (+13% YoY), adjusted EBITDA HK$6.3 billion (+18% YoY), hotel occupancy 98%.

• StarWorld Macau: net revenue HK$2.4 billion (−10% YoY), adjusted EBITDA HK$653 million (−21% YoY), hotel occupancy 100%.

• Broadway Macau: net revenue HK$97 million (−3% YoY), adjusted EBITDA HK$6 million (vs. HK$12 million in 1H 2024); City Clubs: adjusted EBITDA HK$3 million (vs. HK$9 million in 1H 2024).

• Construction Materials Division: adjusted EBITDA HK$423 million (+16% YoY), driven by improved sales in Mainland China.

Outlook and guidance

• Remains confident in Macau’s medium to long-term outlook despite short-term global economic and tariff challenges.

• Phase 4 development progressing, targeting completion in 2027, with focus on non-gaming amenities and new hotel brands.

• Continued focus on mega entertainment events, customer experience, and leveraging smart table technology.

• Exploring overseas opportunities, including Thailand.

• Cost management and operating leverage prioritized as top-line growth continues.