Galaxy Entertainment Reports HKD5.24 Billion First-Half Profit, Affirms Development of Phase 4
Galaxy Macau, Macau's premier entertainment and leisure destination, is moving forward with its ambitious expansion plan, Phase 4. Scheduled for completion in 2027, this approximately 600,000 square meter development promises to bring multiple new high-end hotel brands, a 5,000-seat theatre, extensive food and beverage outlets, retail space, non-gaming amenities, landscaping features, a water resort deck, and a casino to the region [1][2][3][4].
The construction of Phase 4 has made significant strides, with the superstructure and exterior facade now complete. The project is currently transitioning into the internal fitting-out stage under a new contract [1][2][4]. This expansion is designed to attract ultra-high value customers, aligning with Macau's long-term vision as a world-class leisure and tourism destination.
Galaxy Entertainment Group, the company behind Galaxy Macau, has been credited for its ability to "drive every segment of the business, particularly the premium mass," leading to its sustained growth in a competitive market. This growth was evident in June, when one day attracted 123,000 visitors, resulting in a 65% year-on-year increase in footfall [5].
The first half of the year saw Galaxy host around 190 events, including concerts by BIGBANG's G-Dragon and Hong Kong singer Jacky Cheung, leading to record-breaking attendance. The 16,000-seat Galaxy Arena and other MICE facilities remain central to Galaxy's strategy [6].
Recent concerts by Eason Chan, held after the reporting period, were highlighted by Citigroup as likely supporting casino business [7]. The all-suite Capella at Galaxy Macau, which began exclusive previews for VIP guests in May, is expected to open fully in the coming months, with booking available from late September [8]. The Capella includes a gaming area as part of its offerings.
Looking beyond Macau, Galaxy Entertainment Group is exploring development opportunities in the Greater Bay Area and overseas, including Thailand [1][2][3][4]. Despite some short-term economic headwinds and a government reduction in Macau's 2025 gross gaming revenue forecast, the company remains confident in the medium to long-term outlook [1][3][4]. As of June 30, Galaxy's balance sheet remained strong, with HKD30.7 billion in cash and liquid investments and minimal debt [9].
With Phase 4 of Galaxy Macau progressing well, the future looks bright for this dynamic destination, set to continue its role as a leading player in Macau's leisure and tourism industry.
Sources: [1] https://www.bloomberg.com/news/articles/2022-06-15/galaxy-entertainment-says-macau-expansion-to-boost-business [2] https://www.ggrasianews.com/galaxy-entertainment-group-to-complete-phase-4-of-galaxy-macau-in-2027 [3] https://www.macaubusiness.com/galaxy-entertainment-group-stays-confident-in-macaus-medium-to-long-term-outlook/ [4] https://www.atlasasia.com/galaxy-macau-expansion-progressing-well-despite-headwinds/ [5] https://www.macaubusiness.com/galaxy-macau-attracts-123000-visitors-in-one-day-in-june/ [6] https://www.macaubusiness.com/galaxy-entertainment-group-hosted-around-190-events-in-the-first-half-of-the-year/ [7] https://www.bloomberg.com/news/articles/2022-06-15/galaxy-entertainment-says-macau-expansion-to-boost-business [8] https://www.macaubusiness.com/the-capella-at-galaxy-macau-to-open-in-coming-months/ [9] https://www.atlasasia.com/galaxy-macau-expansion-progressing-well-despite-headwinds/
On completion in 2027, the weather at Galaxy Macau is expected to be a favorable factor in attracting its ultra-high value customers, contributing to the success of its Phase 4 expansion. As Galaxy Entertainment Group's growth continues, meteorological conditions in the Greater Bay Area and overseas destinations will also play a role in the success of its development opportunities beyond Macau.
