Galaxy Entertainment Reports Improved 1Q26 EBITDA on Continued Performance of Premium Mass Gaming Business

The Galaxy Entertainment Group Ltd had first-quarter EBITDA for 2026 that came close to HKD3.58 billion ($456.8 million), representing a growth of 8.5% compared to the corresponding period of 2025. For the 3-month period ending March 31, the Macau casino operator has seen an increase in net revenue as well as gross gaming revenue. This can be attributed to the strong showing in premium mass.

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Net revenue went up by 10.7% compared to last year to reach HKD12.40 billion, and the gross gaming revenue went up by 16.4% to reach HKD12.73 billion. The performance of the Galaxy Entertainment Group is a promising start of the year for the operator of several major Macau properties.

Premium Mass Drives Margin

As per the memo issued by brokerage Jefferies after the earnings conference call of the company, Galaxy Entertainment management cited their strong positioning in the premium mass space, which was one of the reasons behind adjusted EBITDA margins between 28% and 30%. The mix in VIP and mass was recorded at 18.5% and 75.4%, respectively.

Within the mass segment, premium mass, defined by average daily theoretical play of HKD10,000 to HKD15,000 and above, accounted for about 45% of total mass. Regular mass made up the remaining 55%. The breakdown suggests that Galaxy’s higher-value customers continued to play an important role in the company’s first-quarter performance.

Galaxy Entertainment operates Galaxy Macau on Cotai, the StarWorld Hotel on the Macau peninsula and Broadway Macau next to Galaxy Macau. Of the group’s portfolio, Galaxy Macau remained the largest contributor in the quarter, generating net revenue of HKD10.34 billion, up 13.1% year-on-year. Adjusted EBITDA at the property rose to HKD3.34 billion from HKD3.02 billion in the same quarter of 2025.

Chairman Points To Steady Start

Galaxy Entertainment chairman Francis Lui Yiu Tung said the group’s first-quarter adjusted EBITDA recorded around HKD2 million of unfavourable luck. He said business performance over the Chinese New Year period was solid and added that, similar to last year, the company saw a longer tail after the holiday period.

Lui also said the group’s balance sheet remains healthy and liquid, with cash and liquid investments of HKD39.2 billion. According to him, having strong finances gives the company the capacity to fund its development projects, look for other investments outside of Macau, and pay dividends to the shareholders.

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The chairman added that Capella at Galaxy Macau, which officially opened in February, has continued to ramp up successfully. He also said the group recently expanded its premium gaming area, Horizon Plus, from 6 private salons to 10, broadening the offering for high-value customers.

World Cup And Property Upgrades

Moreover, he noted that another potential negative event in Q2 would include the FIFA World Cup scheduled from June 11th to July 19th. He explained that the gaming revenue, as well as visitation trends from customers, have been affected before during World Cups. The sports betting volume has also experienced growth in such conditions. The firm planned to organize extra events and promotions in order to counteract this issue.

In addition, Jefferies highlighted that the management believed that the upcoming World Cup would cause even less negative influence than the one observed in 2018 because of its mass-customer profile. According to this brokerage, the renovation of the gaming floors at levels 1 and 3 at StarWorld was completed, while the food and beverage sections have been upgraded. Moreover, the upgrade of hotel rooms and suites at this facility started and will be finished by early 2027.

Phase 4 Remains On Track

Galaxy Entertainment said it is firmly focused on Phase 4 of Galaxy Macau, which is scheduled for completion in 2027. The expansion is set to include 1,350 suites, a 5,000-seat theatre, retail space, a water resort deck and additional casino facilities.

Jefferies said labour ramp-up for Phase 4 is expected to be largely absorbed within pre-opening costs through 2027. The project remains one of the group’s major development priorities as it continues to build out its Macau portfolio.

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Source: GGR Asia