Q2 2025 Galaxy Entertainment Group Ltd Earnings Call Transcript
Key Points
- Galaxy Entertainment Group Ltd (GXYEF) reported a strong second quarter with net revenue of HKD12 billion, up 10% year on year and 8% quarter on quarter.
- Adjusted EBITDA reached HKD3.6 billion, marking a 12% increase year on year and 8% quarter on quarter, with HKD407 million attributed to favorable luck.
- The company experienced significant growth in gaming revenue, which rose 8% year on year and 6% quarter on quarter to HKD59.3 billion.
- Premium mass continues to be a key growth driver, supported by the introduction of exclusive previews for Capella at Galaxy Macau, attracting high-value VIP and premium mass customers.
- Galaxy Entertainment Group Ltd (GXYEF) announced an interim dividend of HKD0.70 per share, reflecting confidence in Macau's long-term outlook and the company's financial health.
- Despite a strong performance, the mass revenue experienced a 5% decline due to poor holding, even though mass drop grew 11% quarter to quarter.
- The retail segment showed a 4.5% decline in sales volume for the first half of 2025, not aligning with the growth in GGR visitation.
- The company faces challenges with the slowing global economy and potential impacts from tariffs, which could affect consumer sentiment in the short term.
- StarWorld, originally designed for VIPs, is undergoing a transition to focus on mass and electronic gaming due to post-COVID market changes, which may take time to stabilize.
- The company is still awaiting updates on the Entertainment Complex Bill in Thailand, which affects its overseas development plans.
(audio in progress) quarter and first half of 2025.
Joining us today are Mr. Ted Chan, Chief Financial Officer; Mr. Roland To, Senior Director of Strategic Planning; and Mr. Peter Caveny, Assistant Senior Vice President of Investor Relations. (Operator Instructions)
I would now like to pass to Mr. Chan for a presentation. Mr. Chan, please go ahead. Thank you.
Thank you, operator. Hello, everyone; and thank you for joining us for the update call on GEG's Q2 and first-half 2025 results. Today, I'm joined by Peter Caveny and Roland To.
Copies of the media release, stock exchange announcement, and PowerPoint presentation are available on our website, which also includes our customer disclaimers.
Macau has a strong second quarter. This is the number that rose 19% year on year to HKD9.4 million. And over, gaming revenue grew 8% year on year and 6% quarter on quarter to HKD59.3 billion. We're especially pleased with our performance during May Golden Week, where
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