Galaxy eyes expansion as Phase 4 takes shape

Galaxy Entertainment Group (GEG) reported a 4% year-on-year increase in first-half net revenue to HKD24.2 billion yesterday, while chairman Francis Lui outlined the group’s ongoing resort upgrades, entertainment initiatives and 600,000-square-meter Phase 4 development.

Speaking as GEG announced its 2026 interim results yesterday, Lui recalled continued growth in tourism, entertainment and premium mass gaming, while outlining a pipeline of resort upgrades and major developments.

“Within the Gaming and Entertainment Division on a normalized basis, our Q2 2026 Net Revenue grew 6%, Adjusted Property EBITDA grew 9% and Adjusted Property EBITDA margin expanded from 30.5% to 31.4% year-on-year,” Lui said.

He pointed to Macau’s strong tourism performance during the first half, noting that visitor arrivals reached 20.9 million, up 9% year-on-year. The city surpassed 20 million cumulative visitors on June 20, 18 days earlier than in the previous year.

“Importantly, Macau experienced a recovery in gaming revenue toward the end of the World Cup, and this momentum has continued into August,” Lui said.

In the statement, the gaming operator reported HKD7 billion in adjusted EBITDA for the first half, up 1% year-on-year, while adjusted EBITDA on a normalized basis rose 14%. The group also announced an interim dividend of HKD0.90 per share, payable in September.

The chairman said the group’s strong balance sheet would support its development pipeline, overseas opportunities and shareholder returns.

“This financial strength allows us to fund our development pipeline, explore overseas opportunities and return capital to shareholders through dividends,” he said.

Phase 4 development

A key focus remains GEG’s 600,000-square-meter Phase 4 development, which Lui described as a landmark project that will significantly expand the group’s non-gaming attractions.

The development will include five ultra-luxury hotels with approximately 1,350 rooms and suites, a 5,000-seat theater, extensive dining options, new retail space, landscaping, a water resort deck and a casino.

“We believe that the addition of these new, high-quality amenities will be a game changer for our business and will further support Macau’s development as a World Centre of Tourism and Leisure,” Lui said.

The project is expected to broaden GEG’s entertainment and tourism offering as Macau continues to diversify beyond gaming.

Capella, StarWorld upgrades

GEG is also continuing to ramp up its recently opened Capella at Galaxy Macau, which officially opened in February.

The group expanded the premium gaming area at Horizon Plus from six to 10 private salons in response to strong demand, further strengthening its offering for high-value customers.

At StarWorld Macau, GEG is undertaking a comprehensive renovation program covering gaming floors, food and beverage outlets, hotel rooms and suites.

The company has completed refurbishment of the gaming floors on levels one and three and has introduced new dining offerings. Hotel room renovations have also begun, including the combination of some rooms to create larger premium suites.

The StarWorld project is expected to be completed by the first quarter of 2027. During the second quarter, about 40% of the property’s room inventory was under renovation, which GEG estimated reduced adjusted EBITDA by HKD14 million.

Meanwhile, the gaming operator reported that it hosted more than 170 concerts, entertainment shows, sporting events and other activities during the first half, including concerts, comedy performances and UFC Fight Week.

“We continued to strengthen our partnerships with leading global entertainment companies,” Lui said.

In June, the company entered into a three-year strategic partnership with Trip.com Group to develop live entertainment experiences, concerts, sporting events and premium travel products for international audiences.

GEG is also working with Tencent Music’s TME Live, UFC, iQIYI, Damai Entertainment and Macau Pass, while recent partnerships with HSBC, Ant Bank and Xiaohongshu are aimed at increasing resort spending, expanding financial services and expanding its digital marketing reach.