Galaxy Entertainment Q2 Results Hit By World Cup Impact

Galaxy Entertainment Group (GEG) reported a decline in second-quarter financial performance after the FIFA World Cup temporarily affected customer activity in Macau’s gaming market. The company said major sporting events have historically influenced gaming behavior, with the 2026 tournament creating additional competition for customer attention.

For the three months ended June 30, Galaxy Entertainment recorded group net revenue of HK$11.8 billion (US$1.50 billion), representing a 2% decline compared with the same period last year and a 5% decrease from the previous quarter. Adjusted EBITDA reached HK$3.38 billion (US$431 million), down 5% year-on-year and quarter-on-quarter.

The company said unfavorable gaming outcomes reduced second-quarter adjusted EBITDA by approximately HK$21 million (US$2.7 million). After adjusting for gaming luck, adjusted EBITDA stood at HK$3.40 billion (US$433 million), an 8% increase compared with the second quarter of 2025.

Galaxy Entertainment Chairman Francis Lui said the FIFA World Cup, which began on June 11, temporarily affected traffic and gaming revenue as customers focused on the tournament and sports betting activity increased.

“Major sporting events have historically influenced customer behavior and gaming revenue in Macau … due to diverted attention and increased competition from sports betting activity,” Lui said.

“The tournament’s extended match schedule this year temporarily affected customer traffic and revenue. Our targeted marketing and promotional initiatives helped to partially offset the impact. Importantly, Macau experienced a recovery in gaming revenue toward the end of the World Cup, and this momentum has continued into August.”

Galaxy Macau Maintains Strong Contribution

Galaxy Macau remained the company’s largest contributor during the quarter, generating net revenue of HK$9.93 billion (US$1.26 billion). The figure was 1% lower year-on-year and 4% below the previous quarter.

Adjusted EBITDA from Galaxy Macau declined 4% on both comparison periods to HK$3.20 billion (US$408 million). However, when adjusted for gaming luck, EBITDA increased 10% year-on-year.

The property’s nine hotels recorded occupancy of 99% during the quarter, reflecting continued demand for accommodation despite pressure on gaming results.

Macau’s overall gaming market also experienced a weaker quarter. Gross gaming revenue across the market reached HK$59.2 billion (US$7.54 billion), remaining flat compared with the previous year and declining 7% from the first quarter.

Galaxy Entertainment reported that its second-quarter gross gaming revenue totaled approximately HK$12 billion (US$1.53 billion). The company’s non-gaming revenue reached HK$1.69 billion (US$215 million), increasing 5% from the second quarter of 2025.

StarWorld Macau also contributed to the quarterly performance. The property recorded gross gaming revenue of HK$1.39 billion (US$177 million), an 8% increase year-on-year but a 7% decline from the previous quarter. Adjusted EBITDA reached HK$303 million (US$38.6 million).

Renovation Work Affects StarWorld Results

Galaxy Entertainment said ongoing renovation work at StarWorld Macau affected quarterly earnings as parts of the hotel inventory remained unavailable.

Up to approximately 40% of StarWorld Macau’s room inventory was undergoing renovation during the quarter, reducing adjusted EBITDA by an estimated HK$14 million (US$1.8 million).

Lui said the company continues to upgrade the property to maintain its appeal among visitors.

“We have completed the refurbishment of the gaming floors on Levels 1 and 3, together with a refit of the food and beverage areas, including the introduction of new dining offerings,” he said.

“We have also recently commenced the renovation of the hotel rooms and suites. This includes combining some rooms to create larger and more spacious premium suites, with the project expected to be fully completed by the first quarter of 2027.”

The company said renovation work at StarWorld remains part of its broader effort to improve the property. Galaxy Entertainment also highlighted continued development at Galaxy Macau Phase 4, which will include five ultra-luxury hotels with approximately 1,350 rooms and suites, a casino, a 5,000-seat theatre, dining facilities, retail areas and a water resort deck.

First-Half Results Show Revenue Growth

Despite second-quarter pressure, Galaxy Entertainment reported improved results for the first six months of 2026.

According to Asia Gaming Brief, Group net revenue increased 4% year-on-year to HK$24.23 billion (US$3.09 billion). Adjusted EBITDA rose 1% to HK$6.96 billion (US$886 million), while profit attributable to shareholders increased 1% to HK$5.28 billion (US$672.9 million).

First-half gross gaming revenue grew 8% to HK$24.77 billion (US$3.16 billion). Mass-market gaming revenue increased 12% to HK$19.08 billion (US$2.43 billion), while electronic gaming revenue rose 14% to HK$1.72 billion (US$219 million). VIP gaming revenue declined 9% to HK$3.98 billion (US$507 million).

Galaxy Entertainment declared an interim dividend of HK$0.90 per share, compared with HK$0.70 per share in the previous year. The dividend, valued at approximately HK$3.94 billion (US$502 million), is expected to be paid on September 15.

As of June 30, the company held HK$37.7 billion (US$4.80 billion) in cash and liquid investments. After accounting for HK$1.8 billion (US$229 million) in debt, Galaxy Entertainment reported a net cash position of HK$35.9 billion (US$4.57 billion).