Galaxy Entertainment Group Ltd has reported a notable increase in its first-quarter earnings for 2026, primarily driven by the performance of its premium mass gaming segment in Macau. The company announced that its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached approximately HKD3.58 billion (USD 456.8 million), marking an 8.5% rise compared to the same period in the previous year. This improvement in financial performance is significant as it reflects the enduring strength of the Macau gaming market and the operator’s strategic positioning within the premium mass sector.
The first quarter, concluding on March 31, saw Galaxy Entertainment achieving a substantial increase in both net revenue and gross gaming revenue. Net revenue increased by 10.7% year-on-year to HKD12.40 billion, while gross gaming revenue grew by 16.4% to HKD12.73 billion. These figures underscore the importance of the premium mass segment, which played a pivotal role in bolstering the company’s financial outcomes.
A report from brokerage firm Jefferies following an earnings call highlighted the company’s focus on premium mass gaming as a key contributor to its EBITDA margins, which ranged between 28% and 30%. The company’s gaming mix consisted of 18.5% VIP gaming and 75.4% mass gaming. Notably, the premium mass gaming, characterized by daily theoretical plays ranging from HKD10,000 to HKD15,000 and above, accounted for approximately 45% of the total mass gaming revenue. This indicates that higher-value patrons continue to be a vital component of Galaxy’s business model.
Galaxy Entertainment operates several prominent casinos in Macau, including Galaxy Macau on the Cotai Strip, StarWorld Hotel on the Macau peninsula, and Broadway Macau adjacent to Galaxy Macau. Of these, Galaxy Macau was the largest revenue contributor during the quarter, generating HKD10.34 billion, an increase of 13.1% compared to the previous year. Adjusted EBITDA for this property rose to HKD3.34 billion from HKD3.02 billion in the same quarter of 2025.
Chairman Francis Lui Yiu Tung remarked on the steady start to the year, noting that the company’s performance around the Chinese New Year was robust, with extended positive momentum beyond the holiday period. Despite an adverse impact of around HKD2 million due to unfavorable luck, Lui emphasized that the company’s financial position remains strong, with cash and liquid investments totaling HKD39.2 billion. This financial stability allows the group to fund development projects, explore investment opportunities beyond Macau, and distribute dividends to shareholders.
In February, the company officially opened Capella at Galaxy Macau, which continues to perform well. The group also expanded its premium gaming area, Horizon Plus, from six private salons to ten, enhancing its offerings for high-value patrons.
Looking ahead, Galaxy Entertainment is preparing for potential challenges posed by the FIFA World Cup, scheduled from June 11 to July 19. Historically, events like this have impacted gaming revenue and customer visitation. However, Jefferies noted that Galaxy’s mass-market customer profile could mitigate the negative effects, as seen in previous World Cups. The company plans to host additional events and promotions to maintain visitor engagement during this period.
In terms of infrastructure, the refurbishment of StarWorld’s gaming floors and food and beverage sections has been completed, with hotel room and suite renovations expected to finish by early 2027. This is part of the ongoing efforts to upgrade and enhance the customer experience across their properties.
Galaxy Entertainment is also focused on Phase 4 of its Galaxy Macau expansion, which is slated for completion in 2027. This ambitious project will include 1,350 suites, a 5,000-seat theatre, retail spaces, a water resort deck, and additional casino facilities. Jefferies reported that the labor ramp-up for this phase is expected to be integrated into pre-opening costs by 2027, indicating that it remains a key development priority as Galaxy continues to strengthen its presence in Macau.
The coming months will see Galaxy Entertainment navigating market dynamics and regulatory landscapes while continuing to expand its offerings and enhance its facilities, all with the goal of maintaining its competitive edge in the Macau gaming industry.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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