Galaxy Entertainment: Riding the Wave of Macau's Recovery

Galaxy Entertainment Group (GEG) has been on a roll, riding the wave of Macau's gaming industry recovery. The company's strong fundamentals, coupled with its strategic focus on premium mass gaming and non-gaming diversification, have driven impressive financial performance over the past year. As the company reports its Q4 results, investors are eager to see if the momentum will continue.



GEG's financial performance has been nothing short of remarkable. In 2024, the company achieved full-year Adjusted EBITDA of $12.2 billion, up 22% year-on-year, and full-year Net Profit Attributable to Shareholders (NPAS) of $8.8 billion, up 28% year-on-year (GlobeNewsWire, 27 Feb 2025). This growth can be attributed to the company's disciplined resource allocation, focus on excellent products and services, and the continued recovery of Macau's gaming industry.

One of the key drivers behind GEG's success has been its commitment to premium mass gaming. This segment has remained the main profit driver for the company, as it continues to allocate resources efficiently and compete on quality rather than price. Additionally, GEG has been actively exploring international development opportunities, working with the Macao Government Tourism Office (MGTO) to promote Macau as an international tourist destination. The company has opened offices in Tokyo, Seoul, and Bangkok to support this initiative, contributing to a 66% year-on-year increase in international visitor arrivals to Macau in 2024 (GlobeNewsWire, 27 Feb 2025).

GEG's strong balance sheet and liquidity position have enabled the company to fund its development pipeline, actively explore international opportunities, and return capital to shareholders. With cash and liquid investments of HKD 31.3 billion and minimal debt of HKD 4.2 billion, GEG has a net position of HKD 27.1 billion (GlobeNewsWire, 27 Feb 2025). This financial strength has allowed the company to invest in its development pipeline, including the fit-out of Capella at Galaxy Macau, which is expected to open in the middle of 2025.

Moreover, GEG has demonstrated its confidence in the longer-term outlook of Macau and the company by paying an interim dividend of HKD 0.50 per share in October 2024, up from HKD 0.30 per share paid in April 2024. The GEG Board also recommended a final dividend of HKD 0.50 per share payable in June 2025 (GlobeNewsWire, 27 Feb 2025). This commitment to returning capital to shareholders reflects the company's confidence in its future prospects and the strength of its balance sheet.

In conclusion, Galaxy Entertainment Group's strong financial performance, driven by its focus on premium mass gaming and non-gaming diversification, has positioned the company as a leading player in Macau's gaming industry recovery. With a solid balance sheet and a commitment to returning capital to shareholders, GEG is well-positioned to continue its growth trajectory. As the company reports its Q4 results, investors will be watching closely to see if the momentum will continue.