Galaxy Entertainment Group (銀河娛樂集團) recorded modest growth during the first half of 2026, but the more consequential part of its results sits beyond the reporting period.

The Macau casino operator is simultaneously renovating StarWorld Macau, its flagship property on the peninsula, and fitting out Phase 4 of Galaxy Macau in Cotai. Together, the projects show where the group expects its next stage of growth to come from: larger premium rooms, entertainment venues, family facilities and new non-gaming attractions alongside additional casino capacity.

For the six months ended 30 June, group net revenue reached HK$24.2 billion (approximately US$3.10 billion), an increase of 4% from the previous year.

Adjusted EBITDA rose 1% to HK$7.0 billion (US$897 million), while profit attributable to shareholders reached HK$5.3 billion (US$679 million), also up 1%.

The figures indicate that Galaxy continued to grow, although considerably more slowly than during the first quarter.

Galaxy generated net revenue of HK$11.8 billion (US$1.51 billion) during the second quarter, down 2% year-on-year and 5% from the first three months of 2026.

Adjusted EBITDA fell to HK$3.4 billion (US$436 million), a decline of 5% both year-on-year and quarter-on-quarter.

The comparison is partly affected by the unusually strong final quarter of 2025 and the timing of major events in Macau. The FIFA World Cup also ran through much of June and July, a period Galaxy had previously identified as a potential short-term drag on visitation and gaming activity.

The first-half result nevertheless left the company with considerable capacity to fund its development programme. At the end of June, Galaxy held HK$37.7 billion (US$4.83 billion) in cash and liquid investments.

This balance sheet matters because the operator is now renovating one major resort while completing another large expansion.

StarWorld Macau (澳門星際酒店) is undergoing its most extensive renovation since the property opened on Avenida da Amizade in 2006.

Galaxy has already renovated the gaming areas on levels one and three and refitted parts of the resort’s food and beverage offering. Work has now moved into the hotel rooms and suites, which the company expects to complete during the first quarter of 2027.

The renovation is intended to reposition StarWorld within a peninsula market that has changed substantially over the past two decades.

When the property opened, its location near established VIP clubs and traditional gaming districts was one of its principal strengths. Macau’s market is now more dependent on premium-mass and mass-market customers, while much of the territory’s new hotel and entertainment capacity has shifted to Cotai.

Galaxy is therefore not simply replacing ageing rooms. It is adapting a peninsula casino hotel to compete for customers who now expect a broader resort experience.

Keeping StarWorld commercially relevant also gives Galaxy a presence outside Cotai and access to visitors who continue to prefer the traditional centre of Macau.

The other side of Galaxy’s development programme is taking shape in Cotai (路氹).

Phase 4 of Galaxy Macau (澳門銀河) covers approximately 600,000 square metres. The development is expected to introduce five high-end hotel offerings new to Macau, with approximately 1,350 rooms and suites in total.

The project will also include an approximately 5,000-seat theatre, restaurants, retail space, landscaped areas, a water resort deck, family and entertainment facilities, and a casino.

Galaxy has increased the planned size of the rooms after market research indicated stronger demand for larger and more luxurious accommodation. That reduces the number of rooms the development can contain, but positions the project towards premium customers who typically spend more across accommodation, dining, retail and gaming.

Completion remains targeted for 2027.

The development fits Macau’s wider concession policy, under which casino operators have committed substantial capital to entertainment, conventions, culture, sport and other non-gaming attractions.

However, Phase 4 is not a departure from gaming. It is an integrated resort expansion that combines non-gaming facilities with new casino capacity. Galaxy’s strategy is to use entertainment and accommodation to increase visitation while retaining the gaming operation as the project’s principal economic engine.

Galaxy’s first-half results are stable rather than spectacular. Revenue increased, but the second quarter lost momentum and EBITDA growth was limited.

The company is nevertheless investing as if Macau’s premium tourism and entertainment market will continue expanding.

StarWorld gives Galaxy a renovated foothold on the peninsula. Phase 4 adds new hotel, entertainment and gaming capacity to a Cotai estate that already includes Galaxy Macau, Broadway Macau, Galaxy Arena and the Galaxy International Convention Center.

The immediate story is a 4% increase in first-half revenue. The larger one is that Galaxy is using its HK$37.7 billion (US$4.83 billion) liquidity position to prepare both sides of its Macau portfolio for 2027.

Whether that investment produces faster growth will depend on more than the construction timetable. Galaxy must fill the new rooms, draw audiences to another major theatre and persuade visitors to spend beyond the casino floor.

The buildings are taking shape. The next question is whether demand grows quickly enough to fill them.

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East Asia Reports
Web: eastasiareports.com · Email: [email protected]
Author — Adrià Mas Rodríguez