Macau gaming operator Galaxy Entertainment Group (GEG) reported that Typhoon Ragasa caused an estimated total impact of up to HK$140 million ($18 million) on its third-quarter 2025 earnings, despite overall results aligning with market expectations.
The storm forced a 33-hour suspension of operations on September 23rd–24th, with direct costs reaching HK$30 million ($3.9 million), according to the company’s remarks during its earnings call following the financial results announcement on Thursday, as cited by Jefferies.
GEG posted adjusted EBITDA of HK$3.3 billion ($423 million) for 3Q25, up 14 percent year-on-year, while revenue rose 14 percent to HK$12 billion ($1.54 billion). The operator maintained its 20.4 percent market share, unchanged from the previous quarter.
During the earnings call on November 6th, management expressed confidence in the fourth-quarter outlook, citing continued momentum from the Golden Week period and strong premium customer demand. ‘October and early November saw a strong recovery, especially in the premium and VIP segments,’ Jefferies analysts Anne Ling and Jingjue Pei wrote in a note.
The third quarter recorded robust VIP gaming revenue, which surged 86 percent year-on-year, while mass gaming and slot revenues grew 13 percent and 11 percent, respectively. Management attributed the strong premium segment performance partly to the soft opening of Capella in May, which has attracted top VIP and super-premium players who have scheduled multiple return visits to Macau.
September results reflected typical seasonality, as many visitors deferred their trips to coincide with Golden Week in October. Additional disruption came when Typhoon Matmo struck Macau on the fifth day of the holiday. Despite these challenges, the eight-day period recorded 1.14 million visitor arrivals, averaging 143,000 per day, with major resorts reporting 100 percent occupancy.
In its long-term growth pipeline, GEG highlighted its Phase 4 expansion, targeted for completion in 2027. The 600,000-square-meter project will include luxury hotels with 1,500 rooms (revised from an initial 2,500 to allow larger suites), 120 retail units, a 5,000-seat mid-size theater, a water resort, and expanded gaming facilities accommodating up to 400 tables.
Management aims to achieve a 20–22 percent market share before Phase 4’s opening, supported by new premium offerings and sustained performance across both mass and VIP segments. While acknowledging competitive pressures, management said the market has ‘settled on a more rational ground’ with a more targeted approach enhanced by smart tables.
In the near term, Capella and Horizon Plus are expected to fully open in early 2026 following their exclusive preview period, while the group’s only satellite operation at Waldo Casino ceased operations on October 31st in line with government policy.
