GEG pledges continued non-gaming diversification as Q1 revenue rises 11%

Galaxy Entertainment Group (GEG) has reported a strong first quarter (Q1) for 2026, with net revenue rising 11% year-on-year to HKD12.4 billion, the company reported yesterday in its Selected Unaudited Q1 2026 Financial Data release.

Despite the positive year-over-year result, the outcome also shows a 10% quarter-on-quarter decline compared to the last quarter of 2025 (Q4).

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew 8% y-o-y to HKD3.6 billion.

According to Francis Lui, chairman of GEG, during the results presentation, the performance was impacted by unfavorable luck (approximately -HKD2 million), with adjusted EBITDA remaining flat quarter-on-quarter.

Analyzed quarter-on-quarter, GEG’s EBITDA was down 17% when compared to Q4 2025, which was also impacted by luck.

“In Q4 2025, our adjusted EBITDA of HKD4.3 billion included approximately HKD730 million of favorable luck, whereas in Q1 [2026] we recorded around HKD2 million of unfavorable luck. After adjusting for luck, adjusted EBITDA was flat quarter-on-quarter,” Lui remarked, adding, “Our business performance over the Chinese New Year was solid, and similar to last year, we experienced a longer tail following the holiday period.”

The GEG chairman also noted that the company’s balance sheet “remains healthy and liquid, with cash and liquid investments of HKD39.2 billion,” pointing out that such financial strength allows the group to fund its development pipeline, explore overseas opportunities, and return capital to shareholders through dividends.

The GEG board previously recommended a final dividend of HKD0.80 per share payable in June 2026, a fact that Lui regarded as a demonstration of the company’s “confidence in the longer-term outlook for Macau in general and in GEG specifically.”

Lui pointed to GEG’s focus on non-gaming diversification and noted that entertainment shows and sporting events continue to play a key role in the group’s strategy to attract new and repeat customers, noting that GEG hosted over 80 concerts, entertainment shows, sporting events, and other events in Q1.

Looking ahead, he mentioned the group will continue to host world-class entertainment, starting with the fight week of the Ultimate Fighting Championship later this month, the Wu Bai & China Blue Rock Star 2 World Tour, and Hong Kong singer Keung To’s concert in June.

Lui also noted that the recent expansion of the group’s premium gaming area, Horizon Plus, from six to 10 private rooms has expanded the group’s offerings in the VIP sector.

The chairman remarked on the focus on completing Phase 4 development, noting that, “upon completion, this landmark project will elevate the appeal of our existing resorts and significantly broaden our non-gaming attractions with a 5,000-seat theater, extensive dining options, new retail space, lush landscaping, a water resort deck, and additional casino facilities,” which he said the group believes will be “a game changer for our business.”

Continue to attract Asian visitors

In GEG’s local market overview, the company noted growth in international visitation to Macau, with a y-o-y increase of about 11% to approximately 800,000 in Q1 2026.

Among these visitors, GEG noted strong growth from Thailand (+71% y-o-y) and India (+41% y-o-y). In addition, visitors from South Korea and long-haul visitors from the United States both increased by 7% y-o-y.

The company expressed interest in attracting more international visitors to Macau, with a special focus on the markets where GEG has offices, namely Tokyo, Seoul, Bangkok, and Singapore.

World Cup to potentially impact June, July results

Addressing upcoming challenges, Lui noted the perceived impacts of the 2026 FIFA World Cup, which will take place from June 11 to July 19, noting that the event tends to reduce casino activity while increasing sports betting.

“Historically, we have observed that customer visitation patterns and gaming revenue can be impacted during the World Cup period, alongside an increase in sports betting activity. We will schedule additional events and other promotional activities to neutralize the short-term impact of the World Cup,” he said.