Galaxy Entertainment Q3 2026 EBITDA Rises 10% to HK$3.7B
Galaxy Entertainment Q3 2026 performance showed stronger reported earnings, with the Macau casino operator recording a 10% year-on-year increase in adjusted EBITDA to HK$3.688 billion. Higher VIP gaming revenue and sustained visitor demand supported the quarterly results.
For the three months ended September 30, 2026, the casino operator recorded total net revenue of HK$12.692 billion, representing a 4% increase from the corresponding period last year. Revenue also improved 7% compared with the second quarter.
The results highlight continued activity across the group's gaming and hospitality operations, although underlying earnings showed a different trend after adjusting for unusually favourable gaming outcomes.
Galaxy Entertainment Q3 2026 earnings reflect strong VIP performance
Galaxy Entertainment's reported adjusted EBITDA increased from HK$3.341 billion in the third quarter of 2025 to HK$3.688 billion in Q3 2026. However, the group benefited from favourable luck in its gaming operations, adding approximately HK$584 million to adjusted EBITDA during the reporting period.
After accounting for this impact, normalized adjusted EBITDA stood at HK$3.104 billion, down 7% year-on-year and 9% quarter-on-quarter.
The difference between reported and normalized earnings provides a clearer picture of the group's operating performance. While the headline figure showed growth, the adjusted underlying result reflected pressure across parts of its gaming business.
Gaming and entertainment remained the company's largest revenue contributor, generating HK$12.022 billion in net revenue, up 5% year-on-year. Its adjusted property EBITDA reached HK$3.823 billion, an 11% increase.
However, normalized adjusted property EBITDA declined 5% to HK$3.239 billion, while the normalized EBITDA margin fell to 29.3% from 29.9% a year earlier.
VIP gaming offsets weaker mass-market results
Galaxy Entertainment recorded total gross gaming revenue of HK$12.875 billion in Q3 2026, up 5% compared with the previous year.
VIP gaming delivered the strongest improvement. Revenue from the segment increased 41% year-on-year to HK$2.9 billion, supported by a higher rolling-chip win rate of 4.8%, compared with 3.1% in the same quarter last year.
Mass-market gaming performance was weaker. Mass gross gaming revenue declined 3% to HK$9.2 billion, while mass table drop fell to HK$32.328 billion from HK$35.414 billion a year earlier.
Electronic gaming revenue increased 8% year-on-year to HK$798 million, although it declined 15% compared with the previous quarter.
These figures indicate that the quarterly improvement was not evenly distributed across gaming categories. Stronger VIP results contributed to overall growth, while mass-market performance remained under pressure.
Galaxy Macau maintains strong operating performance
Galaxy Macau continued to serve as the group's primary revenue and earnings contributor.
The integrated resort generated HK$10.842 billion in net revenue during Q3 2026, representing a 7% year-on-year increase. Adjusted EBITDA rose 15% to HK$3.537 billion, with its EBITDA margin improving to 33% from 30%.
The property also recorded hotel occupancy of 99% across its nine hotels, demonstrating continued demand for its accommodation and hospitality offerings during the summer travel period.
However, favourable gaming outcomes contributed approximately HK$576 million to Galaxy Macau's adjusted EBITDA. Its normalized adjusted EBITDA was HK$3.0 billion, down 3% year-on-year.
StarWorld Macau experienced a more challenging quarter. Net revenue declined 11% to HK$1.129 billion, while adjusted EBITDA fell 24% to HK$279 million. Hotel occupancy nevertheless reached 100%.
Broadway Macau generated HK$51 million in net revenue, down 18% year-on-year, while adjusted EBITDA improved to HK$7 million from HK$1 million in the prior-year quarter.
Macau tourism supports resort demand
Macau welcomed approximately 11.2 million visitors during Q3 2026, an 8% increase year-on-year and 15% improvement from the previous quarter.
Visitors from mainland China accounted for approximately 8.6 million arrivals, increasing 10% year-on-year and 25% quarter-on-quarter.
The stronger visitation helped support hotel occupancy and activity across gaming, dining, shopping and entertainment operations.
Macau's overall gross gaming revenue reached HK$58.5 billion during the quarter, down 4% year-on-year and 1% quarter-on-quarter. For the first nine months of 2026, market GGR totalled HK$181.7 billion, representing 3% annual growth.
The figures suggest that higher visitor numbers did not automatically translate into stronger gaming revenue across the market, reinforcing the importance of spending patterns and gaming performance.
Strong liquidity supports future investments
Galaxy Entertainment maintained a substantial financial position at the end of September 2026.
The company reported HK$36.4 billion in cash and liquid investments. After accounting for HK$2.0 billion in debt, its net cash position stood at HK$34.4 billion.
The group also distributed an interim dividend of HK$0.90 per share on September 15, 2026, returning capital to shareholders while retaining financial resources for future development.
Its construction materials division generated HK$150 million in adjusted EBITDA, down 27% year-on-year. Weaker demand in Hong Kong and mainland China, higher energy costs and reduced contributions from major airport construction works affected the segment.
Galaxy Entertainment is continuing to develop its Macau resort portfolio, including the ramp-up of Capella at Galaxy Macau. Phase 4 remains targeted for completion in 2027.
The upcoming development represents an important part of the group's longer-term investment strategy as Macau continues to strengthen its tourism and non-gaming attractions.
Overall, Galaxy Entertainment's third-quarter performance reflected stronger reported earnings, supported by VIP gaming and tourism demand. However, declining normalized EBITDA and weaker mass-market results indicate that the sustainability of earnings growth will remain an important consideration in the coming quarters.
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Sources
GlobeNewswire (Galaxy Entertainment Group)
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