Galaxy Entertainment Q3 Revenue Rises as Phase 4 Development Progresses

Galaxy Entertainment Group (GEG) reported a 4% year-on-year increase in Q3 2026 net revenue, reaching HK$12.7 billion, as the company continues to benefit from Macau’s tourism recovery and progresses with its significant Phase 4 development project. This growth, coupled with a 10% rise in Adjusted EBITDA to HK$3.7 billion, demonstrates GEG’s ability to capitalize on the rebound in demand despite broader macroeconomic headwinds.

The primary driver of this positive performance remains Galaxy Macau™, which saw a 7% year-on-year increase in net revenue to HK$10.8 billion and a 15% jump in Adjusted EBITDA to HK$3.5 billion. Notably, the company attributes approximately HK$576 million of the Adjusted EBITDA increase to favorable gaming luck, with normalized EBITDA down 3% year-on-year suggesting underlying pressures even amidst the overall growth. This reliance on luck highlights a potential vulnerability in sustained profitability. Hotel occupancy remained exceptionally high across Galaxy Macau’s nine hotels, reaching 99% during the quarter.

While Galaxy Macau™ thrives, StarWorld Macau is undergoing major property upgrades, resulting in an 11% decline in net revenue and a 24% drop in Adjusted EBITDA for Q3. This demonstrates a strategic shift in capital allocation towards the more promising Galaxy Macau™ and the future Phase 4 project. That project, a 600,000-sqm expansion featuring five ultra-luxury hotels, a 5,000-seat theater, and extensive retail offerings, is positioned by management as a “game changer” for the company and Macau’s position as a global tourism center. GEG's continued investment in non-gaming attractions signals a long-term strategy to diversify revenue streams and appeal to a broader range of visitors.

Despite acknowledging short-term headwinds like potential taxation policy changes, slower global economic growth, and geopolitical uncertainty, GEG remains optimistic about Macau’s long-term outlook. This confidence is underpinned by the continued growth of China’s economy and household wealth. The company’s latest twelve-month Adjusted EBITDA stands at HK$14.9 billion, a testament to its ability to navigate market fluctuations and maintain profitability. The company also paid an interim dividend of HK$0.90 per share, demonstrating continued commitment to shareholder returns. The solid holiday performance in October, with record visitor numbers, reaffirms Macau’s appeal and provides an encouraging outlook for Q4.