Galaxy Entertainment reports higher Q2 gaming earnings despite softer quarterly results

Galaxy Entertainment Group (GEG) reported mixed second-quarter results, as softer headline earnings were offset by growth in its normalized gaming operations. The operator also continued to build momentum across its non-gaming business through new developments and entertainment offerings.

For the three months ended June 30, group net revenue totaled HK$11.8bn (US$1.50bn), down 2% year over year and 5% sequentially. Adjusted EBITDA fell 5% on both a yearly and quarterly basis to HK$3.4bn. For the first half of 2026, however, net revenue increased 4% to HK$24.2bn, while adjusted EBITDA edged up 1% to HK$7bn. Net profit attributable to shareholders also rose 1% to HK$5.3bn.

The operator noted that unfavorable gaming luck reduced second-quarter EBITDA by approximately HK$21m. Excluding that impact, normalized adjusted EBITDA increased 8% year over year to HK$3.4bn. Within its Gaming and Entertainment division, normalized net revenue rose 6%, normalized adjusted property EBITDA increased 9%, and the EBITDA margin expanded to 31.4% from 30.5% a year earlier. 

Macau's tourism market remained supportive despite the FIFA World Cup affecting customer activity during June. Visitor arrivals reached 20.9 million in the first half, up 9% from a year earlier, while the market generated HK$123.2bn in gross gaming revenue, an increase of 7%. GEG said gaming demand recovered toward the end of the tournament and that the momentum has continued into August.

The company also continued investing in its integrated resort strategy. Capella at Galaxy Macau, which opened in February, is ramping up following strong demand, prompting the expansion of its Horizon Plus premium gaming area from six to 10 private salons. GEG hosted more than 170 concerts, sporting events and entertainment shows during the first half, while also signing a three-year partnership with Trip.com Group to expand live entertainment and tourism offerings.

GEG ended June with HK$37.7bn in cash and liquid investments and a net cash position of HK$35.9bn after debt. The board declared an interim dividend of HK$0.90 per share, payable in September. 

Meanwhile, work continues on the company's Phase 4 Cotai expansion, which is expected to open in 2027 with five ultra-luxury hotels, approximately 1,350 rooms and suites, a 5,000-seat theater and additional non-gaming attractions.