Galaxy Entertainment Posts 1% Profit Rise to HK$5.28B, Raises Interim Dividend 28.6%
SingTao · 1 SOURCESabout 1 hour ago2 MIN
Summary
Galaxy Entertainment Group (stock code: 027) released its interim results, reporting net profit of HK$52.8 billion for the first half of the year, representing a 0.8% increase year-on-year . Net revenue reached HK$242.3 billion with growth of 4.2%, while adjusted EBITDA came in at HK$70 billion, up 1% year-on-year . The company declared an interim dividend of HK$0.9 per share, a substantial increase of 28.6%, reflecting confidence in the Macau market and Galaxy Entertainment's long-term prospects .
Key Points
- Galaxy Entertainment chairman Lui Che Woo stated that the World Cup commencing on June 11 diverted some demand, though targeted marketing campaigns successfully offset part of the impact
- Gaming revenue in Macau began recovering toward the end of the World Cup and the momentum continued through August 2024
- Galaxy Entertainment's stock price surged 3.7% to close at HK$34.2 following the results announcement
- Mass market gaming revenue grew 12% year-on-year to HK$191 billion, driving overall performance, while VIP room revenue declined 9% to HK$40 billion
- The StarWorld Hotel in Macau is undergoing comprehensive renovation with the full project expected to complete in Q1 2027, affecting approximately 40% of rooms in Q2
Why It Matters
The strong dividend increase demonstrates Galaxy Entertainment's confidence in Macau's gaming recovery trajectory despite intense competition from newer casino operators on the Cotai Strip . The company's strategic shift toward mass market and non-gaming offerings, including the development of Cotai Phase 4 targeting family travelers, positions it to capture broader tourism demand beyond high-rolling gamblers .
The strong dividend increase demonstrates Galaxy Entertainment's confidence in Macau's gaming recovery trajectory despite intense competition from newer casino operators on the Cotai Strip . The company's strategic shift toward mass market and non-gaming offerings, including the development of Cotai Phase 4 targeting family travelers, positions it to capture broader tourism demand beyond high-rolling gamblers .