Galaxy Entertainment Group (GEG), a leading casino operator in Macau, experienced a notable decline in its stock price in late October and early November 2025, despite posting solid financial performances in the third quarter. The company's net group revenue reached between HK$12.16 billion and HK$12.2 billion (US$1.56-1.57 billion), reflecting a year-on-year growth of 14-21% and a sequential increase of 2%. This discrepancy raises questions about the sustainability of Macau's casino sector recovery rally. asia archivos Mundo Video Entertainment
The slowdown in GEG's stock occurred amid a backdrop of post-pandemic normalization in Macau's gaming market. While gross gaming revenue (GGR) maintained growth compared to prior years, seasonal factors played a role, including a slowdown in September due to deferral of travel to the "golden week" of October and a 33-hour casino closure caused by Typhoon Ragasa. Galaxy Macau, GEG’s flagship property, benefited from near-full hotel occupancy rates close to 99% and remained the main growth driver.
Detailed financial data highlighted gaming revenues at Galaxy Macau delivering HK$8.54 billion, up 23% year-on-year, while StarWorld contributed HK$1.14 billion with slight sequential improvement, and Broadway Macau remained stable at HK$62 million. Adjusted EBITDA reached HK$3.3 billion overall, a 14% increase year-on-year, with Galaxy Macau accounting for HK$3.1 billion despite an 8% sequential dip.
The company’s cash position remained strong with HK$36.8 billion in liquidity and a net cash balance of HK$34.8 billion after debt of HK$2 billion, enabling a dividend payment of HK$0.70 per share in October.
Francis Lui Yiu Tung, chairman of GEG, attributed the gaming revenue impact to two main events: the seasonal slowdown in September due to travel deferral and the interruption caused by Typhoon Ragasa, which closed casinos for over a day and discouraged visitors. Analysts such as Goldman Sachs and Bank of America have maintained buy ratings on GEG shares, citing low leverage and strong cash generation, while the company’s strategic focus continues to pivot towards mass market segments, non-gaming entertainment, and expanded offerings in Cotai.
Looking ahead, market participants await updates on the trajectory of Macau’s GGR following the third quarter and the evolution of GEG’s stock price through November and December 2025. Important upcoming milestones include the release of Q4 2025 results expected in early 2026 and progress in operational upgrades and non-gaming business expansion. Risks remain from intensifying competition in Cotai and fluctuations in VIP recovery and Mainland visitor flows, emphasizing the sector's transition toward an entertainment-driven destination beyond traditional gaming.
