Galaxy Entertainment Group (GEG) has reported a solid second quarter for 2025, with net revenue reaching $12.0 billion, a 10% increase from the same period last year and up 8% from Q1. Adjusted EBITDA for the quarter came in at $3.6 billion, rising 12% year-on-year and 8% sequentially. Across the first half of the year, net revenue totaled $23.2 billion, up 8%, while adjusted EBITDA rose 14% to $6.9 billion.

Capella’s Early Impact on VIP Gaming and Tourism

As stated in the Galaxy Entertainment Group Q2 & Interim Results 2025 [pdf], Chairman Francis Lui Yiu Tung noted that Macau’s gross gaming revenue grew by 8% year-on-year to $59.3 billion during Q2, demonstrating resilience despite slower global economic conditions, tariff pressures, and intensified regional competition. He highlighted the premium mass segment as a key growth driver.

The ultra-luxury Capella at Galaxy Macau, which began offering invitation-only previews to top-tier guests in May, made a notable contribution during the Golden Week holiday. June’s concerts by K-pop star G-Dragon and Hong Kong singer Jacky Cheung at Galaxy Arena set a single-day record of more than 123,000 visitors to Galaxy Macau. In total, GEG hosted about 190 entertainment, sports, and MICE events in the first half of the year, increasing foot traffic at the property by 65% year-on-year.

Citigroup analysts credited the May opening of Capella at Galaxy Macau with boosting VIP volumes by 25%–30% compared to April, helping push the month’s gross gaming revenue forecast to MOP21.25 billion ($2.64 billion). The 95-suite property, designed by Moinard Bétaille, offers penthouses with private infinity pools and has been promoted as a benchmark in handcrafted luxury and cultural authenticity.

The market’s reception to the preview phase has been positive, and the full opening is expected in the coming months. Capella’s debut coincided with strong tourism numbers during mainland China’s Labor Day Golden Week, when Macau welcomed 850,000 visitors, a 40.7% increase from the prior year.

Operational Updates and Strategic Moves

GEG’s hotel occupancy across nine properties averaged 98% in Q2. The company completed the rollout of smart tables earlier this year and has begun using data insights from this technology to enhance the customer experience.

In June, the group announced that Waldo Casino would close by year-end for commercial reasons. Staff will be reassigned to other properties, with vocational training offered to support the transition.

On the development front, Phase 4 construction at Galaxy Macau has moved past the structural and exterior stages, with internal fitting now underway. This 600,000-square-meter expansion is set to introduce new luxury hotel brands to Macau, alongside a 5,000-seat theater, extensive dining and retail options, non-gaming attractions, landscaped areas, a water resort deck, and a casino. Completion is scheduled for 2027.

GEG also continues to assess expansion opportunities in the Greater Bay Area and select overseas markets, including Thailand.

The company recently received “Integrated Resort of the Year” for Galaxy Macau and “Casino Operator of the Year” for the second consecutive year at the Global Gaming Awards Asia-Pacific 2025. Four of its restaurants earned a total of five Michelin stars in the 2025 Hong Kong Macau Guide, and Galaxy Macau maintained its Forbes Travel Guide status as the resort with the most Five-Star hotels under one roof globally for the third straight year.

While the Macau government lowered its 2025 gross gaming revenue forecast from MOP240 billion to MOP228 billion in June, GEG remains confident in the city’s long-term prospects. Mr. Lui stated, “We acknowledge that there are shorter-term challenges including the slowing global economy and potential tariffs impact, however we remain confident in the medium to longer term outlook for Macau.”

The company’s strong balance sheet—$30.7 billion in cash and liquid investments as of June 30, with minimal debt—supports ongoing development, overseas exploration, and shareholder returns, including an interim dividend of $0.70 per share payable in October 2025.